Download West Orange High School

AP Macroeconomics Syllabus
Mr. Iatarola
Course Description:
Initially the course will explore economics from both “micro” and “macro”
perspectives. Students will gain an understanding of how scarcity requires
individuals and institutions to make choices about how to use resources, how
businesses interact with society, and gain an understanding of the
characteristics of different economic systems and institutions. Financial
literacy shall be a part of instruction and discussion throughout the course.
The AP Macroeconomics class is primarily designed to give students an
understanding of economic concepts and their applications to problems of
public policy. Learning to analyze problems and make decisions (cause and
effect) is a major theme throughout the course. Issues such as inflation and
unemployment will be examined, as well as their possible causes and cures.
The role of the government and the Federal Reserve in the economy will be
examined in depth; as well as how international economics affects us here in
the U.S.A. The class requires a rigorous reading schedule and students will be
required to illustrate relationships through graphing.
The course provides instruction in basic economic concepts, measurements of
economic performance, national income and price determination, the financial
sector, inflation, unemployment, and stabilization policies. Additional
instruction is provided in economic growth and productivity, as well as an
open economy of international trade and finance. The course promotes the
understanding of aggregate economic activity by utilizing graphs, charts and
data.
Textbook: Campbell R. McConnell and Stanley Brue (Notes)
Macro 500 Questions
Website: gjhseconomics.weebly.com
Clifford Video Clips… http://www.youtube.com/user/ACDCLeadership
Reffonomics Ppts… http://reffonomics.com
Mjmfoodie…https://www.youtube.com/playlist?list=PLF2A3693D8481F442
Learner.com Econ U$A… http://www.learner.org/series/econusa/
Grades: Student grades for a marking period will be determined as follows:
Tests: 70%
Other: 30% Homework (definitions, notes summary, questions
summary). All homework is hand-written and due the day of the test.
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AP Macroeconomics Schedule
Unit 1: Basic Economic Concepts; including
Economic Systems, Supply & Demand, and
Comparative Advantage
- Vocabulary Homework (due on test day)
1. Economics
25. Capitalism (Market Economy)
2. Scarcity
26. Command System
3. Opportunity Costs
27. Resource Market
4. Utility
28. Product Market
5. Marginal Analysis
29. Circular Flow Model
6. Other-things-equal Assumption
30. Tariff
7. Tradeoffs
31. Absolute Advantage
8. Macroeconomics
32. Comparative Advantage
9. Microeconomics
33. Law of Demand
10. Post Hoc Fallacy
34. Income Effect
11. Fallacy of Composition
35. Substitution Effect
12. Normative Economics
36. Market Demand Curve
13. Positive Economics
37. Determinants (“shifters”) of Demand
14. Factors of Production
38. Substitute Good
15. Land
39. Complementary Good
16. Capital
40. Law of Supply
17. Labor
41. Market Supply Curve
18. Entrepreneurial Ability
42. Determinants (“shifters”) of Supply
19. Full Employment
43. Surplus
20. Consumer Goods
44. Shortage
21. Capital Goods
45. Equilibrium Price
22. Production Possibilities Curve
46. Price Ceiling
23. Invisible Hand
47. Price Floor
24. Free Market System
48. Normal Goods
49. Inferior goods
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Unit 2: Macro Measures: GDP, Unemployment,
Inflation, and the Business Cycle
- Vocabulary Homework: (due on test day)
1. National Income Accounting
2. Gross Domestic Product (GDP)
24. Potential Output
3. Intermediate Goods
25. GDP Gap
4. Final Goods
26. Inflation
5. Expenditure Approach
27. Real GDP per capita
(C+I+G+Xn)
28. Price Index
6. Income Approach
29. Consumer Price Index (CPI)
7. Personal Consumption
30. GDP Deflator
Expenditures (C)
31. Quantity Theory of Money MV=PQ
8. Cross Private Domestic Investment
32. Anticipated Inflation
(Ig)
33. Cost of Living Adjustments
9. Government Purchases (G)
(COLA’s)
10. Net Exports ( Xn)
34. Real Interest Rate
11. Disposable Income (DI)
35. Nominal Interest Rate
12. Nominal GDP
36. Deflation
13. Real GDP
37. Hyperinflation
14. Economic Growth
38. Great Depression Unemployment
15. Labor Force
rate
16. Unemployment Rate
39. Durable Goods
17. Discouraged Workers
40. Productivity
18. Frictional Unemployment
41. Business Cycle
19. Structural Unemployment
42. Peak
20. Cyclical Unemployment
43. Recession / Contraction
21. Full Employment
44. Trough
22. Natural Rate of Unemployment
45. Recovery / Expansion
23. Discouraged Workers
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Unit 3: AD, AS, Fiscal Policy, and Growth
- Vocabulary Homework: (due on test day)
1. Aggregate Demand (AD)
24. Efficiency Wages
2. Determinants “Shifters” of AD
25. Menu Costs
3. Real-Balances Effect / Wealth
26. GDP Gap
Effect
27. Employment Act of 1946
4. Interest Rate Effect
28. Expansionary Fiscal Policy
5. Foreign Purchases Effect
29. Contractionary Fiscal Policy
6. Aggregate Supply (AS)
30. Discretionary Spending
7. Determinants “Shifters” of AS
31. Non-discretionary Spending
8. Short-Run Aggregate Supply Curve
32. Multiplier Effect
(SRAS)
33. MPC + MPS = 1
9. Long-Run Aggregate Supply Curve
34. M= 1/MPS
(LRAS)
35. Built-In Stabilizer
10. Demand-Pull Inflation
36. Progressive Tax System
11. Cost-Push Inflation
37. Budget Deficit
12. Stagflation
38. Budget Surplus
13. Recessionary Gap
39. National Debt
14. Inflationary Gap
40. Full-Employment Budget
15. Productivity
41. Cyclical Deficit
16. Keynesian Economics
42. Political Business Cycle
17. Classical Economics
43. Crowding-Out Effect
18. Supply-Side Economics
44. Net Export Effect
19. “3 range” Aggregate Supply Curve
45. Treasury Bond
20. Phillips Curves
46. US Securities
21. Fiscal Policy
47. “Shifters” of Long Run Aggregate
22. Equilibrium Price Level
Supply
23. Equilibrium Real Output
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Unit 4: Money, Banking, and Monetary
Policy
- Vocabulary Homework: (due on test day)
Medium of Exchange
20. Federal Reserve System (FED)
Unit of Account
21. Board of Governors
Store of Value
22. Federal Open Market Committee
M1, M2, M3
(FOMC)
Real vs. Nominal Interest Rate
23. Monetary Multiplier = 1/RR
Fractional Reserve Banking System
24. Liquidity
Balance Sheet
25. Open-Market Operations (Federal
Assets and Liabilities
Open Market Committee) “FOMC”
Demand Deposits / Checking
26. Discount Rate
Accounts
27. Federal Funds Rate
10. Required Reserves
28. Prime Interest Rate
11. Reserve Ratio
29. Bonds / Securities
12. Excess Reserves
30. Demand for Loanable Funds
13. Demand for Money
31. “Shifters” of Demand for Loanable
14. “Shifters” of Demand for Money
Funds
15. Liquidity
32. Supply of Loanable Funds
16. Supply of Money
33. “Shifters” of Supply for Loanable
17. Monetary Policy
Funds
18. Expansionary / Easy Money Policy
34. Crowding Out
19. Contractionary /Tight Money
Policy
1.
2.
3.
4.
5.
6.
7.
8.
9.
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Unit 5: Trade and FOREX
- Vocabulary homework: (due on test day)
1. Balance of Payments
14. Tariffs
2. Current Account
15. Revenue Tariff
3. Balance of Trade (surplus and
16. Protective Tariff
deficit)
17. Smoot-Hawley Tariff 1930
4. Capital (Financial Account)
18. Import Quota
5. Exchange Rates
19. Smoot-Hawley Tariff 1930
6. “shifters” of Currency Demand and
20. Import Quota
Supply
21. Dumping
7. Appreciation
22. Flexible or Floating Exchange Rate
8. Appreciation effect on net exports
System
9. Depreciation
23. Fixed Exchange Rate System
10. Depreciation effect on net exports
24. (NAFTA) North American Free
11. Absolute Advantage
Trade Agreement
12. Comparative Advantage
25. European Union
13. Terms of Trade
26. (WTO) World Trade Organization
Unit 6: Course Review
 Graphing Review: Free Response Study Guide Handout
 ACDC: Clifford video clips: http://www.youtube.com/user/ACDCLeadership
5 key graphs
https://www.youtube.com/watch?v=0U54nTggSPE&index=7&list=PL04578C46
EDAB7734
15 minute super quick review of all of macro
https://www.youtube.com/watch?v=e18RXFFoL9c&index=8&list=PL04578C46ED
AB7734
ACDC Clifford Free Response Questions
https://www.youtube.com/playlist?list=PL1oDmcs0xTD9tWXi_jm2Q4-SF1ULktz-k
 Multiple Choice Review FLVS:
9-5… https://aptestreview.flvs.net
 Reffonomics web activity:
- All the Graphs you need to know
http://reffonomics.com
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Unit 7 Supplemental: Financial Literacy:
Financial literacy shall be a part of instruction and discussion throughout the
course and include information regarding saving and financial investing;
earning income; buying goods and services; taxes; the use of credit and credit
cards; budgeting and debt management, including student loans and secured
loans; banking and financial services; planning for one’s financial future,
including higher education and career planning; credit reports and scores; and
fraud and identity theft prevention. Financial literacy includes the knowledge,
understanding, skills, behaviors, attitudes, and values that will enable a
student to make responsible and effective financial decisions on a daily basis.
Saving and financial investing; FLS-Financial Literacy Section
Earning income; FLS-Financial Literacy Section
Buying goods and services; Unit 2 Supply and Demand + FLS
The use of credit and credit cards; FLS-Financial Literacy Section
Budgeting and debt management, FLS-Financial Literacy Section
Student loans and secured loans; FLS-Financial Literacy Section
Banking and financial services; Unit 5 Monetary Policy + FLS
Taxes; Unit 6 Fiscal Policy + FLS
Planning for one’s financial future, including higher education and career
planning
Credit reports and scores; FLS-Financial Literacy Section
Fraud and identity theft prevention. FLS-Financial Literacy Section
Market Watch: Stocks Game
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