Download CHAMBERSBURG AREA SCHOOL DISTRICT

CHAMBERSBURG AREA SCHOOL DISTRICT
COURSE OF PLANNED INSTRUCTION
SCHOOL CASHS
DEPARTMENT Social Studies
COURSE TITLE AP Macroeconomics
LESSON FREQUENCY (PER WEEK) 5
COURSE CREDIT
1
GRADES 11-12
TIME 47 Minutes
COURSE REQUIRED
DATE
August 2003
COURSE LENGTH 1 Year
COURSE REVISED 2003
ELECTED
X
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I. MAJOR COURSE OJBECTIVES AND STUDENT PERFORMANCE INDICATORS
All Students Will:
A. Develop an understanding of basic economic concepts
1. Describe and analyze the “economic way of thinking”.
6.1A, 6.3B
2. Describe the methodology used in economics.
6.1A
3. Graph and interpret data
6.1A
4. Identify the conditions that give rise to the economic problem of scarcity.
6.3A, 6.3B
5. Define opportunity costs.
6.3E
6. Identify the opportunity costs involved various courses of action.
6.3E, 6.3B
7. Define comparative and absolute advantages.
6.4F
8. Describe and give examples of the Law of Comparative Advantage.
6.4F
9. Identify the three fundamental questions every economic system must answer.
6.1B, 6.3C
10. Construct a Production Possibilities Curve from hypothetical data.
6.3C, 6.3A, 6.3B
11. Apply the concept of opportunity costs to a production possibilities curve.
6.3A, 6.3B, 6.3C, 6.3E
12. Analyze the significance of different locations on, above or below a PPC.
6.3E, 6.3C, 6.3A
13. Describe and analyze the economic goals of different economic systems.
6.3C, 6.2D, 6.2H
14. Explain the laws of demand and supply.
6.2E, 6.2F
15. Differentiate between a change in quantity/level for both supply and demand.
6.2E
16. Explain the role demand/supply elasticity plays in price determination.
6.2F
B. Describe how economic performance is measured.
1. Define Gross National Product, Gross Domestic Product, Net National Product, National Income, Personal
Income , and Disposable Income
6.1C
2. Explain how we measure GNP and GDP.
6.1C
3. Describe the purpose of National Income Accounting.
6.1C
4. Explain what goods and services are counted in GNP and GDP as Consumption, Investment, Government
Expenditures and Net Exports.
6.1C, 6.2I
5. Compute GNP, GDP, NI. PI, and DI when given National Income Accounting data.
6.1C
6. Compute GNP and GDP using both the Income and Expenditure methods.
6.1C
7. Describe the purpose of a Price Index.
6.2F
8. Explain how a Price Index is calculated.
6.2F
9. Use a Price Index to calculate the rate of inflation.
6.2F
10. Distinguish between Demand-Pull inflation and Cost-Push inflation.
6.2F
11. Explain how Unemployment is measured in the United States.
6.1D, 6.1C
12. Calculate Unemployment and Employment Rates from appropriate data.
6.1C
13. Differentiate between Frictional, Cyclical, Structural, and Seasonal unemployment.
6.1C, 6.1D
14. Describe the phases of the Business Cycle.
6.1D
15. Identify the phases of the Business Cycle when given the appropriate economic data.
6.1D
C. Develop an understanding of National Income and Price Determination.
1. Define Aggregate Demand, Aggregate supply and Equilibrium
6.2E
2. List and explain the basic causes of shifts in Aggregate Demand and Aggregate supply.
6.2E
3. Graph Aggregate Demand and Aggregate Supply.
6.2E
4. Describe what determines the amount of goods and services produced and the level of employment in the
Classical theory of Aggregate Demand / Aggregate Supply.
6.2E
5. Describe what determines the amount of goods and services produced and the level of employment in the
Keynesian theory of Aggregate Demand / Aggregate Supply.
6.2E, 6.2F
6. Describe and calculate from given data the Marginal Propensity to Consume and the Marginal Propensity
to Save.
6.3D
7. Describe Keynesian Equilibrium in words and diagrams.
6.1D, 6.1B
8. Explain the Equilibrium levels of output and employment in Keynesian analysis when prices are free to
vary.
6.5E, 6.5F, 6.3C
9. Describe the multiplier.
6.2H
10. Given values for the Marginal Propensity to consume, calculate the values for the multiplier.
6.1D, 6.2H
11. Describe how Fiscal Policy can be used to stabilize the economy.
6.1D, 6.2H, 6.2J
12. Distinguish between automatic and discretionary stabilizers.
6.2H
13. Distinguish between a contractionary and expansionary fiscal policy.
6.2H
14. Evaluate macroeconomic conditions and determine the Fiscal Policy that can be used to improve those
conditions.
6.2H
15. Analyze the components of the Circular flow Diagram and use it to explain how a single purchase can
influence all the Macro flows in the country.
6.2A
16. Define and explain the functions of money.
6.2C
17. Explain what determines the value of money.
6.2C
18. Define and contrast the definitions of M1, and M2, and M3.
6.3C
19. Explain how the banking system creates money.
6.2C
20. Describe the organizational structure of the Federal Reserve System.
6.2C
21. Define and explain Open Market Operations.
6.2C, 6.5G
22. Explain how Open Market Operations, the Discount Rate, and the Reserve Requirement, are used to
expand or contract the money supply.
6.2D, 6.2C
23. Compare and contrast the Keynesian and Monetarist views.
6.2D, 6.2H
24. Identify the economic problems and recommend Monetary and Fiscal policies to improve economic
performance when given economic statistics.
6.2D, 6.2H
25. Use a Phillips Curve to illustrate tradeoffs between inflation and unemployment in the short and long run.
6.2J
26. Describe and discuss the essence of the Classical, Keynesian, Monetarist, Supply-side, Rational
Expectations, and Neo—Classical theories.
6.2H
D. Develop an understanding of the causes of economic growth and the benefits derived from it.
1. List and explain the causes of economic growth.
6.5B, 6.5A
2. Understanding the mechanism of capital deepening and the role it plays in economic growth.
6.5B, 6.5G
3. Describe the past and future role of technological progress in economic growth.
6.4A
4. Understanding of the supply, demand, and efficiency factors as ingredients for economic growth.
6.2E, 6.5B
5. Explain the role of education an training in improving the stock of human capital.
6.5B
6. Describe the importance of the overall social-cultural-political environment in facilitating growth.
6.2H, 6.3F, 6.1B
7. Understand the importance of a rising standard of living as the key benefit of growth.
6.2K
8. Explain the role played by fiscal and monetary policy.
6.2J, 6.2D
E. Develop an understanding of international finance, exchange rates, and balance of payments.
1. Define comparative and absolute advantage.
6.4F
2. Describe and give examples of the Law of comparative Advantage.
6.4F
3. Define specialization and exchange.
6.4A, 6.4B, 6.4G
4. Explain how both parties to a trade gain from voluntary exchange.
6.4E
5. Explain comparative Advantage in terms of Opportunity cost.
6.4C
6. When given necessary data, compute the costs of producing two commodities in two countries, determine
which nation has the Comparative Advantage in the production of each commodity, calculate the trading
ratio, and explain the gains to each nation and the world from Specialization and Trade.
6.4E
7. Describe and evaluate the case for Free Trade.
6.4E
8. Describe and evaluate the case for Protectionism.
6.4C, 6.4G
9. Describe the balance of payments.
6.2L, 6.4E
10. Describe how Exchange Rate Systems work and convert currency using current exchange rates.
6.2L
11. Describe the effects of depreciating or appreciating Currency Rates on a nation’s imports and exports.
6.2L, 6.4G, 6.4E
II. CONTENT OUTLINE AND TIME ALLOCATION
I.
Basic economic concepts
A. Scarcity: the nature of economic systems
B. Opportunity costs and production possibilities
C. Specialization and comparative advantage: the basis for international trade
D. The functions of any economic system (what, how, and for whom to produce)
E. Demand, supply, price determination
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II.
Measurement of economic performance
A. Gross national product, gross domestic product, and national income concepts
B. Inflation and price indices
C. Unemployment
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III.
WEEKS: 5
CHAPTERS: 1-4
WEEKS: 4
CHAPTERS: 5-6
National income and price determination
A. Aggregate supply
1. Short-run and long-run analysis
2. Sticky versus flexible wages and prices
3. Supply-side policies
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
B.
Aggregate demand
1. Circular flow
2. Components of aggregate demand
3. Multiplier
4. Fiscal policy
5. Monetary policy
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C.
WEEKS: 4
CHAPTERS: 7-8
WEEKS: 6
CHAPTERS: 9-10-11
Money and banking
1. Definition of money and its creation
2. Tools of central money policy
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
WEEKS: 4
CHAPTERS: 12-13
D. Fiscal monetary mix
1. Interaction of fiscal and monetary policies
2. Government budget policies
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WEEKS: 3
CHAPTERS: 13 and 16
E. Trade-offs between inflation and unemployment
1. Long run versus short run
2. Supply shocks
3. Role of expectations
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IV.
Economic growth
A. Theories of, long term v short term benefits of, and causes of
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V.
WEEKS: 4
CHAPTERS: 14-15
WEEKS: 2
CHAPTERS: 8
International finance, exchange rates, and balance of payments
A. International trade and policy
B. International finance, exchange rates, and balance of payments
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
WEEKS: 4
CHAPTERS: 17-18
III.
TEXTS, MATERIALS, AND MAJOR RESOURCES
Arthur O’Sullivan, Steven Sheffrin. “Macroeconomics: Principles and Tools”, 3 rd edition. Prentice Hall, 2003
Paul Heyne. “The Economic Way of Thinking”, 10th edition. Prentice Hall (secondary)
Supplemental Readings – selected by instructor
Videos
Prentice Hall supplementary program
 Computer software
 Transparencies
 Study guides
 Web site enrichment activities
Annual Editions: Economics 2003/2004
IV.
PROCEDURES FOR ASSESSMENT OF PA ACADEMIC STANDARDS
Teacher designed quizzes and tests and/or standard text tests
Cumulative exams as designated by District policy
Teacher observation
Class participation, group discussions, and teacher conference
Teacher, peer, self-assessment of performance
Special reports
Student presentations
Opportunity for alternative assessment as deemed appropriate by the teacher
V.
SPECIAL CONDITIONS OR PREREQUISITES
Advance course application process, completion of CP World History with a B average or better, enrolled in or
Completion of CP/AP American History.
VI.
COURSE EVALUATION PROCEDURE
All planned courses will be monitored by the department chair and building administrators and revised according
to the District’s revision cycle.
VII.
ACCOMMODATIONS
The needs of students in the learning support and gifted programs are met through a variety of adaptations,
modifications or enrichments to the planned course. If a student has an IEP or a GIEP (Gifted individual
Education Plan), specific strategies and accommodations for that student will be identified in his or her
individualized educational plan under the section called specially designed instruction. The learning support and
gifted teachers are available to provide classroom teachers with any kind of assistance in providing
accommodations.