Syllabus

Program: AP Macroeconomics is offered as an alternative to the required economics course that all Michigan students must take to graduate high school. Student selection into AP Macroeconomics is based on the individual's enthusiasm for the subject matter as well as their ability, willingness, and self-discipline to do the amount of reading and additional work required of the AP Macroeconomics course. Goals of Advanced Placement Macroeconomics: The overall long term goal of the AP Macroeconomics class is to build a strong foundation in aiding student comprehension of economic concepts such as scarcity, opportunity cost, trade-offs, economic growth, aggregate macroeconomic analysis, money, banking, monetary policy, fiscal policy, and international economic concepts. This course places enormous emphasis on graphing and data/chart analysis, specific objectives regarding graphing is listed within each unit objectives. The course promotes the understanding of aggregate economic activity; the utilization of resources within and across countries; and the critical evaluation of determinants of economic progress and economic devisions made by policymakers (AP 2010). The immediate goal of AP Macroeconomics is to prepare students for the AP Macroeconomics test in May.
 * Type of School: Public
 * Class Size: 30-35 Students
 * Total Enrollment: 2085 students (2008 numbers)
 * Ethnic Diversity: 87% Caucasian, 9% African American, 2% Asian, 1% Hispanic, 1% other
 * Advanced Placement Population: Approximately 11% of all students take one or more AP class.

Course Design: AP Macroeconomics is an academic course taught in the fall semester (18 weeks). Each class period consists of fifty-six minutes of instructional time.

Assessment and Evaluation: All student readings and practice problems will be drawn directly from the supplemental material listed below, AP Macroeconomic website, textbook and corresponding workbooks. Interpreting, analyzing, labeling, and generating graphs, charts, and data to explain economic concepts is a major focus of the evaluation of this course. Formal assessments will be similar to the Advanced Placement Test. Tests will include both multiple choice and free-response portions modeled to flow as the AP Test will. Most exams will take place in fifty minutes with 27 minutes allotted for 25 multiple choice questions and 23 minutes allotted for one free response question. Units that are more heavily weighted on the AP Test will be assessed with an exam that spreads over two days, with day one consisting of multiple choice questions and day two consisting of free-response questions.

Additional Assessments: Students will also be evaluated on their contribution to the class through attendance and ability to work within a group to debate current economic issues. Students will also be asked to keep an economic journal in which they collect articles as they relate to the economy and interpret the article with a graph, whenever possible. Additional forms of assessment will be through quizzes, homework assignments, nightly readings, and current event projects.

Class Breakdown - Grades:

Semester Evaluation of grades will be assessed on the following: Marking Periods will be broken down as follows: Course Materials: Text and Workbook: Supplements: Breakdown of Units, Graphical Expectations, Time Allotment - parentheses indicates the amount of the AP exam that is for each topic, and Free-Response Questions
 * First Card Marking - 40%
 * Second Card Marking - 40%
 * Final Exam - 20%
 * The final exam will reflect the style and expectations of AP College Board
 * Tests - 60%
 * Other Graded Assignments/Participation - 40%
 * Mankiw, Gregory N. Principles of Economics, 5th edition. Mason, Ohio: South-western Cengage Learning, 2008.
 * Morton, John S. and Rae Jean B. Goodman.  Advanced Placement Economics, Teacher Manual and Student Activities, 3rd Edition, New York National Council on Economic Education, 2003.
 * Articles from Wall Street Journal, Business Week, The Economist, and Financial Times
 * Books including: Capstone: Exemplary Lessons for High School Economics, An Inquiry into the Wealth of Nations, Naked Economics, Saving Adam Smith, Travels of a T-Shirt in a Global Economy
 * Media including: Commanding Heights: Battle for the World Economy, Economics U$A videos, John Stossel's: Macroeconomic Video Clips
 * Websites including http://www.aplia.com, http://highered.mcgraw-hill.com , http://www.bls.gov , http://www.ers.usda.gov/Data/Macroeconomics/ , http://www.federalreserve.gov/ , http://pages.stern.nyu.edu/~nroubini/WEBLINKS.HTM , additional websites will be used as they become available and the instructor is made aware of.

Unit 1
Introduction to Economics (8 - 12%)

6 - 8 class periods

Chapter 1: Ten Principles of Economics Chapter 2: Thinking Like An Economist Chapter 3: Interdependence And The Gains From Trade Chapter 25: Production and Growth (5 - 10%) Unit 1: Charts, Graphs, Data Activities: The following are a list of simulations that will be used to foster a clear understanding of the most basic economic concepts and to engage students in economics. Possible Free-Response Questions From Released Items:
 * Scarcity - Economics - Opportunity Costs - Incentive - Trade-Offs - Thinking at the Margin - Market Economy - Property Rights - Externality - Inflation - Business Cycle
 * Illustration of the Circular Flow Model - Production Possibilities Frontier - Normative Statements - Positive Statements
 * Trade - Absolute Advantage - Comparative Advantage - Specialization - Opportunity Cost - Imports - Exports
 * Productivity - Human Capital - Physical Capital - Natural Resources - Technological Knowledge - Diminishing Returns - Catch-Up Effect
 * 1) Construct and interpret a production possibilities frontier
 * 2) Define and calculate absolute and comparative advantages for production exchange
 * 3) Illustrate and explain a basic circular flow model
 * 4) Define productivity
 * 5) Illustrate and explain growth using a production possibilities curve
 * 6) Evaluate current growth trends in the U.S. and other foreign countries
 * 1) Thinking at the Margin and Opportunity Cost - What to Order? Using restaurant menus students place orders and then apply marginal thinking and opportunity cost to the situation
 * 2) Circular Flow - Adopted from AP Sample Syllabus #2
 * 3) Property Rights - Gone Fishing (a Common Sense Economics Lesson)
 * 4) Benefits from Trade - Adopted from AP Sample Syllabus #2
 * 2009: Question 2 part C
 * 2008: Question 3

Unit 2
Supply and Demand (inclusive of the above 8 - 12%)

4 - 5 class periods

Chapter 4: The Market Forces of Supply and Demand Unit 2: Charts, Graphs, Data Possible Free-Response Questions From Released Items: Applicable questions from the AP Microeconomics exam: For example from the 2006 exam, question 3:A
 * Market - Law of Demand - Quantity Demanded - Determinates of Demand - Normal Goods - Inferior Goods - Substitutes - Complements - Law of Supply - Quantity Supplied - Determinates of Supply - Shifts in Supply and Demand - Equilibrium - Surplus - Shortage
 * 1) Illustrate and correctly label a demand/supply graph
 * 2) Evaluate the law of demand and the law of supply
 * 3) Show changes in demand/supply
 * 4) Illustrate the difference between a change in quantity demanded/supplied versus a change in demand/supply
 * 5) Illustrate and evaluate the effects of a price ceiling and price floor
 * 6) Illustrate equilibrium price and quantity
 * 7) Illustrate and explain changes in equilibrium price and quantity due to shifting demand or supply curves

Unit 3
Money and the Financial Sector (15 - 20%)

13 - 15 class periods

Chapter 26: Saving, Investment, and the Financial System Chapter 27: The Basic Tools of Finance Chapter 29: The Monetary System Unit 3: Charts, Graphs, Data Possible Free-Response Questions From Released Items:
 * Financial Markets - Bond - Stock - Financial Intermediaries - Mutual Funds - Private Savings - Public Savings - Budget Surplus - Budget Deficit - Market for Loanable Funds - Crowding Out - Discretionary Spending - Mandatory Spending
 * Present Value of Money - Future Value of Money - Compounding - Diversification
 * Money - Medium of Exchange - Unit of Account - Store of Value - Liquidity - Commodity Money - Fiat Money - Currency - Demand Deposits - Federal Reserve - Money Supply - Monetary Policy - Fractional Reserve Banking - Reserve Requirement - Money Multiplier - Open Market Operations - Discount Rate - Federal Funds Rate
 * 1) Calculate, explain, and analyze real versus nominal interest rates
 * 2) Define and calculate M1, M2, and M3
 * 3) Explain and calculate the purchase power of the dollar
 * 4) Illustrate, explain, and analyze the relationship between the demand for money and the money market
 * 5) Calculate and explain the money multiplier
 * 6) Explain the quantity theory of money and its equation
 * 7) Illustrate, explain, and analyze the relationships between the amount of money demanded and supplied, amount of investment, and equilibrium GDP with respect to easy or tight money policies
 * 2009: Question 1 parts C, D
 * 2009: Question 2 part B
 * 2009: Question 3 part A, B
 * 2008: Question 1 part D
 * 2007: Question 1 part A
 * 2007: Question 2
 * 2006: Question 2
 * 2005: Question 1 parts C, D, E
 * 2005: Question 2
 * 2004: Question 1 parts B, C
 * 2004: Question 3

Unit 4
Macroeconomics (12 - 16%)

17 - 19 class periods

Chapter 23: Measuring a Nation's Income Chapter 28: Unemployment Chapter 24: Measuring the Cost of Living Chapter 30: Money Growth and Inflation Chapter 33: Aggregate Demand and Aggregate Supply Unit 4: Charts, Graphs, Data Possible Free-Response Questions From Released Items:
 * Microeconomics - Macroeconomics - Circular Flow Diagram - Gross Domestic Product (GDP) - Consumption - Investment - Government Purchases - Net Exports - Nominal GDP - Real GDP - GDP Deflator
 * Labor Force - Calculation of the Unemployment Rate - Labor Force Participation Rate - Natural Rate of Unemployment - Cyclical Unemployment - Frictional Unemployment - Structural Unemployment - Seasonal Unemployment - Discouraged Worker - Union - Strike - Collective Bargaining - Unemployment Insurance - Effect of Minimum Wage Laws
 * How to Calculate the Consumer Price Index (CPI) - Producer Price Index (PPI) - Inflation Rate - Problems with the CPI - Deflation - Real Interest Rate - Nominal Interest Rate - Cost-push Inflation - Demand-pull Inflation
 * Quantity Theory of Money - Velocity of Money - Inflation Tax - Money Demand - Fisher Effect - Purchasing Power - Costs of Inflation - Menu Costs
 * Business Cycle - Recession - Depression - Aggregate Demand - Aggregate Supply - Long-run v. Short-run Aggregate Supply - Determinates of Aggregate Demand - Determinates of Aggregate Supply - Sticky-Wage Theory - Sticky-Price Theory - Misperceptions Theory - Stagflation - Flexible-Price Theory - Flexible-Wage Theory
 * 1) Explain the components of GDP and create GDP equations
 * 2) Calculate GDP using expenditure and income approach
 * 3) Explain the shortcomings of GDP measurements
 * 4) Define and change Nominal GDP (NGDP) to Real GDP (RGDP)
 * 5) Inflate and deflate nominal GDP
 * 6) Define, explain, and evaluate unemployment rate
 * 7) Categorize types of unemployment
 * 8) Explain and measure inflation
 * 9) Calculate nominal and real inflation rates
 * 10) Calculate and evaluate CPI and PPI
 * 11) Illustrate and explain demand-pull and cost-push inflation
 * 12) Illustrate and describe the four phases of the business cycle
 * 13) Illustrate, explain, and evaluate aggregate demand and supply
 * 14) Illustrate and explain the determinates of AD and AS
 * 15) Analyze macroeconomic equilibrium shifts
 * 2009: Question 1 part E
 * 2007: Question 3
 * 2006: Question 1 part A, B
 * 2006: Question 3 part B
 * 2005: Question 1 part A, E
 * 2005: Question 2 part C
 * 2005: Question 3 part B
 * 2004: Question 1 part A, D, E, F

Unit 5
Governments (20 - 30%)

20 - 22 class periods

Chapter 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand Chapter 35: The Short-Run Trade-off between Inflation and Unemployment Unit 5: Charts, Graph, Data Possible Free-Response Questions From Released Items:
 * The Wealth Effect - The Interest Effect - The Exchange Rate Effect - Money Markets - Theory of Liquidity Preference - Changes in the Money Supply - Fiscal Policy - Spending Multiplier - Marginal Propensity to Consume (MPC) - Crowding Out Effect - Keynesian Policy - Automatic Stabilizers - Balanced Budget Multiplier
 * Phillips Curve - Natural-Rate Hypothesis - Supply Shock - Costs of Reducing Inflation
 * 1) Illustrate, explain, and analyze expansionary and contractionary fiscal policy
 * 2) Illustrate and explain automatic stabilizers and the full-employment budget
 * 3) Illustrate and explain the effects of crowding out
 * 4) Illustrate and explain the supply-side effects of fiscal policy
 * 5) Illustrate and explain the Phillips curve short and long run
 * 6) Illustrate and explain the Laffer curve
 * 7) Calculate and explain average and marginal propensities to consume and save
 * 8) Illustrate and explain the multiplier effect
 * 2009: Question 1 parts A, E, F
 * 2009: Question 3 part C
 * 2008: Question 1 parts A, B, C
 * 2007: Question 1 parts D, E
 * 2006: Question 3 parts A, C
 * 2005: Question 1 part C
 * 2005: Question 3
 * 2004: Question 2 part A

Unit 6
Open Economy (10 - 15%)

12 - 14 class periods

Chapter 9: Application: International Trade Chapter 31: Open-Economy Macroeconomics: Basic Concepts Chapter 32: A Macroeconomic Theory of the Open Market Unit 6: Charts, Graphs, Data Possible Free-Response Questions From Released Items:
 * Benefits of International Trade - Arguments for Restricting Trade
 * Exports - Imports - Net Exports - Trade Balance - Trade Surplus - Trade Deficit - Appreciation - Depreciation - Nominal Exchange Rate - Real Exchange Rate - Purchasing Power Parity
 * Market for Loanable Funds - Market for Foreign-Currency Exchange - Net Capital Outflows - Trade Policy - Capital Flgiht - Trade Quota - Tariff
 * 1) Illustrate and evaluate terms of trade and potential gains from trade
 * 2) Illustrate and determine world price
 * 3) Analyze supply and demand of exports and imports
 * 4) Distinguish an open from closed economy
 * 5) Illustrate and define the impact of trade barriers (tariffs and quota)
 * 6) Explain and calculate current and capital accounts
 * 7) Calculate a balance of payments
 * 8) Define exchange rate
 * 9) Illustrate the market for foreign currency
 * 2009: Question 2 parts A, B
 * 2008: Question 2 parts A, B, C
 * 2007: Question 1 parts B, C
 * 2006: Question 1 parts D, E
 * 2005: Question 1 parts B, C
 * 2005: Question 2 part D
 * 2004: Question 2 parts B, C

Tentative Calendar
Considering this course is to be taught in the fall semester only, there will be four - six review sessions prior to the AP exam in May. Students should make a point to attend at least four of the review sessions Morning and afternoon review sessions will be held to accommodate student schedules. At least one of the review sessions will be held on a Saturday closer to the AP Test. These are the intended weeks and units; they do take into account testing, conferences, and breaks. However, some days could be eliminated due to weather or other unforeseen incidents. Since the AP exam will not be postponed, students and the teacher must stay on this schedule to maximize background.