AP Macroeconomics Course Syllabus

Transcription

1 AP Macroeconomics Course Syllabus I. Course Description Macroeconomics is designed to promote an appreciation and understanding of economics as a discipline, including the concepts and theories associated with it and the tools and methodologies used by economists. It is intended to foster an international awareness and knowledge regarding the types of economic problems facing developing countries as well as those facing industrialized nations through a better understanding of macroeconomic aggregates/indicators and macroeconomic principles. The course is divided into thematic units that address specific concepts and areas of economic study. Throughout the course, students will be taught to critically interpret and evaluate statistical data and other forms of economic evidence. Emphasis on application of theory to real world situations will be present throughout the course. We will address the basic terminology, concepts, and theories of economics: the use of diagrams will be introduced and expanded upon. This course will highlight the role of consumers, producers, governments, as well as the influence of supply/demand within different market structures. Monetary and Fiscal policy will be examined at length. We will focus on why countries trade, the impact of exchange rates, the problems involved, and how these problems are addressed. Special attention will be given to the major macroeconomic issues facing countries economic growth, economic development, unemployment, inflation, and income distribution. II. Course Objectives Upon completion of the course, students will be expected to: Demonstrate a core knowledge of economics Comprehend, analyze, and critically evaluate economic concepts and theories Explain different approaches to, and interpretations of, economic theory Present arguments that are clear, coherent, relevant, and well substantiated Explain economic phenomena through the use of charts, graphs, diagrams and data analysis Present economic concepts/theories from an international perspective Apply economic theories to real-world examples Plan, organize, and research an individual stock portfolio Plan, organize, and research an individual research reports based upon current events that will demonstrate an in-depth understanding and application of several macroeconomic concepts III. The Advanced Placement Exam The AP macroeconomics exam is a little over two hours long. It consists of a 70-minute multiple-choice section and a 60-minute free response section. Some questions in the free response section require graphical analysis. The free-response section begins with a mandatory 10-minute reading period. During this period, students are advised to read each of the questions, sketch graphs, make notes, and plan their answers. Students than have 50 minutes to write their answers. The multiple-choice section accounts for two-thirds of the student s exam grade and the free-response section for the remaining one-third.

2 IV. Course Texts: Primary Textbook Economics: Principles, Problems, and Policies (AP Edition), Campbell R. McConnell, Stanley L. Brue, and Sean M. Flynn (McGraw-Hill Companies, Inc., 19th ed.) ISBN # Supplementary Works Explorations in Economics, Alan B. Krueger and David A. Anderson (Worth Publishers, 1st ed.) ISBN # Contemporary Economics, William A. McEachern (South-Western College) ISBN # Economics from a Global Perspective, Alan Glanville (Glanville Books Ltd, 2nd ed.) ISBN # Other Required Readings Throughout this course, students will be required to do additional reading of supplemental case studies using current statistics, web sites, handouts and video clips that clarify key concepts, and many current event articles that serve to complement this course derived from various types of news print. V. Course Outline: Unit I: Introduction to Economics A. Scarcity, Choice, and Opportunity Cost B. Production Possibilities curve C. Comparative advantage, absolute advantage, specialization, and exchange D. Demand, supply, and market equilibrium E. Macroeconomic issues business cycle, unemployment, inflation, growth Key Concepts: Introduction to the language of economics, micro vs. macro, positive vs. normative economics, economic decision making, pitfalls of decision making, scarcity, opportunity costs, production possibilities, absolute advantage, comparative advantage, specialization, terms of trade, Law of demand, demand schedules, determinants of demand, individual and market demand curves, Law of supply, supply schedule, determinants of supply, market equilibrium, shifts in supply and demand with effects on equilibrium price and quantity, introduction of key macroeconomic issues. Production possibilities curve (frontier) Demand and supply curves illustrating equilibrium Demand and supply curves demonstrating shifts in supply/demand curves Demand and supply curves demonstrating movement along the supply/demand curves Textbook reading to accompany Unit I: Introduction to Economics Chapter 1: Limits, Alternatives, and Choices Chapter 2: The Market System and the Circular Flow Chapter 3: Demand, Supply, and Market Equilibrium Unit II: Measurements of Economic Performance A. National income accounts 1. Circular flow 2. Gross domestic product 3. Components of gross domestic product 4. Real versus nominal gross domestic product B. Inflation measurement and adjustment 1. Price indices 2. Nominal and real values

3 3. Costs of inflation C. Unemployment 1. Definition and measure 2. Types of unemployment 3. Natural rate of unemployment Key Concepts: Circular flow of economic activity, inclusions and exclusions concerning gross domestic product, leakages vs. injections, expenditure approach to GDP, income approach to GDP, nominal versus real GDP, phases of the business cycle, types of unemployment, full employment, measurements of inflation, types of inflation, effects of inflation. Circular flow of economic activity Phases of the business cycle Textbook reading to accompany Unit II: Measurements of Economic Performance Chapter 23: An Introduction to Macroeconomics Chapter 24: Measuring Domestic Output and National Income Chapter 25: Economic Growth Chapter 26: Business Cycles, Unemployment, and Inflation Unit IIa: Economic Growth and the Role of Government in the Economy A. Investment in human capital B. Investment in physical capital C. Research and development, and technological development D. Growth and development strategies E. Barriers to economic growth and development F. The influence of public policy on long term growth G. Poverty and Inequality Key Concepts: U.S. economic growth, basic research, applied research, R&D, impacts of changes in the quality of capital, impacts of changes in the quantity of capital, public policy regarding social issues, public policy in business regulation, natural monopolies, externalities, & cost vs. benefit analysis of public policies. Production Possibilities Frontier Per worker Production Function Aggregate demand/aggregate supply model Marginal Private Cost vs. Marginal Social Benefit Lorenz Curve / Gini Coefficient Negative Externalities/Positive Externalities Textbook reading to accompany Unit IIa: Economic Growth and Role of the Government in the Economy Chapter 25: Economic Growth Chapter 23: Performance and Policy Chapter 13: Wage Determination and Productivity Unit III: Economic Aggregates, National Income, and Price A. Aggregate demand 1. Determinants of aggregate demand 2. Multiplier and crowding out effects B. Aggregate supply 1. Short-run and long-run analyses 2. Sticky versus flexible wages and prices 3. Determinants of aggregate supply

4 C. Macroeconomic equilibrium 1. Real output and price level 2. Short and long run 3. Actual versus full employment output 4. Economic fluctuations Key Concepts: Marginal propensity to consume, the multiplier effect, reasons for a downward sloping aggregate demand aggregate demand curve, determinants of aggregate demand, aggregate supply in the short and long run, sticky versus flexible prices and wages, determination of equilibrium output and price level, actual versus full employment, utilization of resources. Investment demand curve Aggregate demand and short run aggregate supply curve Aggregate demand and long run aggregate supply curve Textbook reading to accompany Unit III: National Income and Price Chapter 27: Basic Macroeconomic Relationships Chapter 28: The Aggregate Expenditures Model Chapter 29: Aggregate Demand and Aggregate Supply Chapter 30: Fiscal Policy, Deficits, and Debt Unit IV: Monetary Policy and the Financial Sector A. Money, banking, and financial markets 1. Definition of financial assets: money, stocks, bonds 2. Time value of money (present and future value) 3. Measures of money supply 4. Banks and the creation of money 5. Money demand 6. Money market 7. Loanable funds market B. Central Bank and control of the money supply 1. Tools of central bank policy 2. Quantity theory of money 3. Real versus nominal interest rates Key Concepts: Functions of money, characteristics of money, measures of money, transactions demand for money, the money market, the creation of money, loanable funds market, organization of the Federal Reserve, tools of monetary policy, responsibilities of the Fed, quantity theory of money Money market Loanable funds market Textbook reading to accompany Unit IV: Monetary Policy and the Financial Sector Chapter 31: Money, Banking, and Financial Institutions Chapter 32: Money Creation Chapter 33: Interest Rates and Monetary Policy Unit V: Inflation, Unemployment, Stabilization Policy, and the Role of Government in the Economy A. Fiscal and monetary policies 1. Demand-side effects 2. Supply-side effects 3. Policy mix 4. Government deficits and debts

5 B. Inflation and unemployment 1. Types of inflation 2. Demand-pull inflation 3. Cost-push inflation 4. The Phillips Curve: short run versus long run 5. The role of expectations Key Concepts: Fiscal policy and the aggregate demand/aggregate supply model, monetary policy and the aggregate demand/aggregate supply model, combinations of the policies and their effects, international considerations, government deficits and debts, long-run aggregate supply, demand pull and cost push inflation, the inflationunemployment relationship, expectations Aggregate demand/aggregate supply model Phillips curve Laffer curve Textbook reading to accompany Unit V: Inflation, Unemployment, and Stabilization Policies Chapter 35: Extending the Analysis of Aggregate Supply Chapter 36: Current Issues in macro Theory and Policy Unit VI: International Trade and Finance A. Balance of payments accounts 1. Balance of Trade 2. Current account 3. Capital account B. Foreign exchange market 4. Demand for and supply of foreign exchange 5. Exchange rate determination 6. Currency appreciation and depreciation C. Net exports and capital flows D. Links to financial and goods markets E. Free trade vs. protectionism Key Concepts: U.S. and world trade, absolute and comparative advantage, balance of payments, foreign exchange markets, implications of foreign trade, effects of domestic fiscal and monetary policies on capital flows and foreign exchange markets, use of resources, decision and policy making. Production possibilities frontier Aggregate Supply/Aggregate Demand Model Foreign exchange market Lorenz Curve / Gini Coefficient Developmental Diamonds Textbook reading to accompany Unit VII: International Trade and Finance Chapter 37: International Trade Chapter 38: The Balance of Payments, Exchange Rates, and Trade Deficits Economic Summit Simulation / The Economics of Developing Countries (Unit VII Activity)

6 VI. Classroom Expectations/Policies: A.) Grades: Students are required to read from their textbook daily. The reading schedule and course assignments are posted by month. All work will be assigned point values. Grades will be based upon the number of points that a student achieves out of the total possible points. Semester grades will be based upon the following components: Daily Reading Quizzes Current Event Assignments Discussion Assignments Virtual Stock Market Assignments Web Exploration Assignments Focused Projects and Presentations Unit Exams Comprehensive Final Exam B.) Due Dates: Students are expected to complete all assignments by their respective due dates. It is important that work is completed on schedule. This course is comprehensive and requires sequential understanding of the course materials. Therefore, late work will be penalized. Late work will be marked down one full letter grade for each day after the due date. Students will receive no points for assignments that are turned in three or more days late. Students who miss assignments and/or tests due to an excused absence will have one day per day of excused absence to make up the work missed for full credit. Assignments not made up will receive scores of 0. (Please note that scores of 0 negatively affect the final grade in the total points system.) C.) Homework: Expect nightly reading assignments in the text. The average is about 5-6 pages, and you should take notes, which you can use the next day on the daily quiz. Please take the reading seriously, otherwise you will be in the dark during lectures and discussions. If you do a poor job of reading or you do not read at all, you will not do well on the daily quiz that is based upon the previous night s reading. D.) Grading Criteria: Students are expected to produce quality work in this class. Points on assignments will be deducted for spelling and grammatical errors, sloppy or incomplete work, inaccurate or missing information, and failing to follow instructions. Test dates will be announced in class and posted on Course Calendar well in advance to allow time for student preparation. Students will accumulate points during each semester grading period. The percentages and grades will break down as follows: %=A 93-90%=A %=B %=B 80-83%=B- My contact information is as follows: Colleen Alves Lakeside High School 5909 Highway 291 Nine Mile Falls, WA (509) , ext calves@9mile.org 77-79%=C %=C 70-73%=C %=D %=D 60-63%= D- 59% and Below=F

7 E.) Suggestions for Success: The most important skill for a student in Macroeconomics is time management. Because we have both short- and long-term assignments, it is essential that students plan carefully so that sufficient attention can be paid to each assignment. Students need to utilize the course calendars supplied to them by this instructor. This is a college level course. As such, expectations will be high. F.) Report Cards: This course is one year in length. Progress reports allow parents to know about academic problems before official grades are calculated and submitted. They allow students to be aware of their current standing, so that they may work to improve their grade. Parents may or call me at anytime for student updates. Please keep parent addresses current with me as I send home progress reports via on a weekly basis. I update the grade book online daily. G.) Attendance: Regular attendance is absolutely essential in this class. I will strictly enforce the school attendance policy (and tardy policy, dress code, etc.). H.) Cheating: This is defined as gaining an unfair advantage, or trying to do so. The consequences of cheating: a zero on the assignment, a phone call home, a meeting with the principal, and possible disciplinary action. Please don t do it! I.) Classroom Management: I cannot overstate the importance of taking excellent class notes. They will be of great help not only for test preparation for all Unit Exams but also for preparing to take the AP Macroeconomics Exam as well. Note taking also prepares you for your college experience. Each one of you is expected to take an active part in class on a daily basis. This means that phones are to be silenced and stowed prior to class. I will VIGOROUSLY enforce this policy! When you are in my class you will be learning; not texting! When you enter the room; be prepared to think, ask questions, and make comments. If you run into difficulties, feel free to drop by my room for extra help. If special problems arise, see me as soon as possible so that a remedy can be applied. J.) Classroom Conduct: 1) Be prompt: Be in your seat and ready to work at the tardy bell. 2) Be prepared: Come to class with all necessary materials and assignments completed. 3) Be polite: Treat others with respect and dignity. Ensure that you are not disrupting someone else s education. The classroom is a diverse place with diverse thinking. We learn so much from others when we truly listen. It is imperative that students feel comfortable expressing their opinions. I expect my students to listen to their fellow classmates with respect. 4) Be professional: Aim high and strive to attain our goals. Life is not a dress rehearsal! Your best chance at a great life is through your education. - I am looking forward to a very productive and fun year!!! Mrs. Alves