Advanced Placement Macroeconomics Syllabus

Transcription

1 Mr. Eric Krause Coral Reef Senior High School Advanced Placement Macroeconomics Syllabus All who have meditated on the art of governing mankind have been convinced that the fate of empires depends on the education of youth. Aristotle There can be no real individual freedom in the presence of economic insecurity Chester Bowles ( ) Course Description- Macroeconomics Macroeconomics is the study of the business cycle, productivity, national prosperity, unemployment, price levels, and policies which attempt to control the interconnected economy. This subject uses various models to explain and describe how the economy works as a system. The study of economics is a useful tool to aid in student understanding of wages and personal finance, government policies on the economy, and the increasingly interdependent world of international finance and trade. The short-term goal of this course is to aid student understanding of those concepts tested in the AP Exam in Macroeconomics. Taking the AP Macroeconomics Exam and other AP exams can translate into financial savings on post-secondary education. The vast majority of colleges and universities in the US and many outside the US, grant either academic credit, advanced placement, or both, to incoming students with qualifying AP grades. Course Requirements 1. Students are required to attend class prepared to participate in discussions. The course is discussion-based and is designed to promote analytical study of issues. This will require extra effort on the student s part to complete out of class reading and class assignments. AP courses tend to require more reading than most. 2. Keep a notebook containing class notes, study questions, and handouts. 3. Turn in all assignments on the due date. Failure to do so will result in a letter grade deduction per day the assignment is late. Skill Requirements: Upon completion of the AP Macroeconomics course, students will have acquired the following skills: 1. Understanding and manipulating technical information, graphs and charts 2. Examining major issues affecting world economies 3. Applying theoretical concepts to real-world situations 4. Analyzing economic problems and communicating results, graphically, verbally, and in writing. 5. Proposing and assessing solutions to economic issues Attendance Attendance is very important to successful completion of the course. Students who miss class often will quickly jeopardize chances for both good grades in the course and successful AP Exam grades. Students should make a sincere commitment to be in class. Attendance is one of

2 the items that a teacher is legally responsible for, so cutting or skipping while you are under my care is strictly enforced and will result in a referral immediately the next day. Evaluation Academic Grades issued will be based on the following scale: Work = Frequency = Weighting Classwork Given as necessary 1 Grade Homework Every day 1 Grade Quizzes Appx. 1/week 1-2 Grades Tests Appx. 1/ Topic 4 grades Special Projects Appx. 1-2/year 5-6 grades Mid-Term 1/year 10% of Final Grade Final 1/year 10% of Final Grade Grading Scale A 100% to 90% 4.00 to 3.50 B 89% to 80% 3.49 to 2.50 C 79% to 70% 2.49 to 1.50 D 69% to 60% 1.49 to 1.00 F Below 60% below 1.00 Grading Procedures 1. Work not turned in will be given a zero in the gradebook and also impacts the effort grade. (Potential Senoritis Victims please pay attention) 2. If a student is absent, it is his/her responsibility to obtain the work missed and consult with the teacher regarding the due date of the missed assignment. 3. Unsatisfactory absences over the permitted amount (1 credit classes=10/year;.5 credit classes=5/year) will result in the student receiving a NC grade. I held up credits of 4 seniors last year, so pay attention to this part! 4. One letter grade will be deducted for each day an assignment is late. 5. Note that the Grading scale is subject to change pending a school board ruling on the application of plusses and minuses. Effort Grade: A student s effort grade will be based on the following: absences, tardiness, preparation for class, efficient use of class time, and making up work missed work. Conduct Grade: Adhere to the classroom rules of conduct at all times. Failure to do so will result in a lower conduct grade. Expectations for student behavior 1. Follow instructions the first time they are given. Insubordination, defiance, disrupting the class, or failure to comply with instructions is not acceptable. 2. Unless instructed, remain in your assigned seat at all times. If you need to do leave this seat for some reason, ask for permission. 3. Please finish all food and drinks during lunch, not in the classroom. 4. Stay on task at all times. If you finish the current task early, you are to find something productive to work on while the class catches up, or until the exercise is completed. (see rules 1 and 6)

3 5. Please refrain from talking while the instructor is talking or while a fellow student is trying to concentrate on work. 6. It is expected that grooming and sleeping is to be done at home or on your own time, not in class 7. Dishonesty or cheating will result in an automatic zero on an assignment. 8. Defacing, breaking, or stealing school equipment will result in a fine for the property or a referral to school administrators for disciplinary action. 9. Please do not use vulgar language or profanity. This will result in a referral as you are disturbing the learning environment of the class. 10. I have a Bring Your Own Device policy as does Coral Reef. DEVICES ARE TO BE USED FOR CLASS PURPOSES ONLY! If a student is caught using his cell phone/ tablet for other classes and or non academic purposes, the device will be immediately confiscated and returned only to the student s parent /guardian. (Note to parents: Please do not call or text your child during school hours as this sends a mixed message regarding this rule and will only result in wasted time for you and your child. If you must reach your child immediately, please contact the school office.) All other school expectations outlined in the student handbook apply. All other school expectations outlined in the student handbook apply. Procedures for non-instructional routines 1. Instructions will be given at the beginning of class daily. 2. Sharpen pencils at the beginning of class or after initial instruction. 3. Attendance will be checked daily. 4. Students must have a pass from the teacher to leave class. One person at a time is permitted. 5. The school tardy policy will be followed. 6. During fire drills, hurricane/tornado drills, bomb threats, or school lock-down, students will follow the school procedures accordingly and adhere to the instructions given by the teacher. (as outlined in the handbook). 7. Work areas should be left neat and clean. 8. Excessive restroom usage, or excessive time in the restroom will be considered skipping and result in a referral. 9. If a substitute is instructing all assignment grades and class penalties will be doubled. No late assignments will be accepted from anyone who did not have an excused absence from school (I went to Mr. Blah s room is not acceptable- only an excused absence or pre-approved school function is acceptable in this case.) Supplemental Reading Materials: Newspapers and Magazines: Economist New York Times Time Magazine Web Resources -Economics National Council on Economics Education Economics University Freakonomics Homepage National Economic Council CNN Finance Homepage

4 Text: Economics McConnell, Campbell R., and Brue, Stanley L. Economics: Principles, Problems and Policies. 16 th ed. New York: McGraw Hill, Course Outline-Economics Unit 1 Introduction to Economics (2 weeks) Content: A. Economic Way of Thinking B. Scarcity Needs and Wants C. Opportunity Costs and Tradeoffs D. Production Possibilities Curve E. Economic Systems F. Specialization and Comparative Advantage G. The Basis for International Trade H. Absolute advantage I. Marginal Benefits and Costs J. Basic Economic Questions K. Define Supply and Demand L. Determinants of Supply and Demand M. Equilibrium Price and Quantity Chapter 1: The Nature and Method of Economics A. Economic Perspective B. Why Study Economics C. Economic Methodology D. Macroeconomics vs. Microeconomics E. Pitfalls to sound reasoning Chapter 2: The Economizing Problem A. Foundation of Economics B. Economics: Employment and Efficiency C. Unemployment, Growth, and the Future D. Consider This E. Economic Systems F. The Circular Flow Model Chapter 37: International Trade: Comparative Advantage and Protectionism A. The Basis for Economic Trade B. Comparative Advantage: Graphical Analysis C. Supply and Demand Analysis of Exports and Imports D. Trade Barriers E. The Case for Protection Chapter 3: Understanding Individual Markets: Demand and Supply A. Markets B. Demand C. Supply D. Supply and Demand: Market Equilibrium E. Government-Set Prices Corresponding Assignments Advanced Placement Macroeconomics Workbook: Various assignments Unit 2 Measurement of Economic Performance (2 weeks) A. Gross National Product Chapter 7: Measuring Domestic Output, National B. Gross Domestic Product and National Income Concepts Income and Price Level C. Real GDP versus Nominal GDP A. Assessing the Economy s Performance D. Expenditures Approach to Calculate GDP B. Gross Domestic Product E. C+I+G+(x-m) C. The Expenditures Approach F. Income Approach of Calculating GDP D. The Income Approach G. Inflation, Deflation and Indices E. Other National Accounts H. Unemployment Chapter 8: Macroeconomic Instability: Unemployment and Inflation A. Economic Growth B. The Business Cycle C. Unemployment : Various Categories of Unemployment D. Inflation and Deflation E. Redistribution Effects of Inflation F. Effects of Inflation on Output or GDP

5 Major Assignment: Inflation: This assignment with teach students how Inflation, Prices, Wages, and the CPI are all interrelated. Students are to look up the average wages of a career they are interested in. They are then going to look up the average wages 5 years ago, 10 years ago, 15 years ago and 20 years ago. The students are to calculate the increase in nominal wages, and look up CPI data for the past 20 years with which they will calculate the real wage increase in their selected career. The students are then to write a one page response on their findings including a comparison inflation rates with wage growth in the selected career. Corresponding Assignments Advanced Placement Macroeconomics Workbook: Various Unit 3 National Income and Price Determination: Aggregate Supply and Demand (4 weeks) A. Aggregate Supply B. Short Run and Long Run Analysis C. Sticky vs. Flexible Wages and Prices D. Supply- Side Policies E. Aggregate Demand without Money F. Circular Flow G. Components of Aggregate Demand H. Multiplier I. Fiscal Policy Chapter 9: Basic Macroeconomic Relationships A. The Income- Consumption and Income-Saving Relationships B. The Real Interest-Rate-Investment Relationship C. The Multiplier Effect Chapter 11: Aggregate Demand and Aggregate Supply A. Aggregate Demand B. Aggregate Supply C. Equilibrium and Changes in Equilibrium Chapter 16: Extending Analysis of Aggregate Supply A. From Short Run to Long Run B. Applying the Extended AD-AS Model C. The Inflation Unemployment Relationship D. The Long Run Phillips Curve Taxation and Aggregate Supply Corresponding Assignments Advanced Placement Macroeconomics Workbook: Various Assignments Chapter 12: Fiscal Policy A. Legislative Mandates B. Fiscal Policy and the AD-AS Model C. Built in Stability D. Evaluating Fiscal Policy E. Problems, Criticisms, and Complications Unit 4 Monetary Policy and the US Financial System (3 weeks) A. Money and Banking B. Definition of Money and its Creation C. Tools of the Federal Reserve D. Monetary Policy and Aggregate Demand E. Determinants of Demand for Money F. Factors Affecting Interest Rates G. Money Market Chapter 13: Money and Banking and Monetary Policy A. The Functions of Money B. The Supply of Money C. What Backs the Money Supply D. The Demand for Money E. The Money Market F. The Federal Reserve and the Banking System G. Recent Developments in Money and Banking Chapter 14: How Banks and Thrifts Create Money A. The Balance Sheet of a Commercial Bank B. A Single Commercial Bank C. The Banking System: Multiple Deposit Expansion

6 Chapter 15: Monetary Policy A. Consolidated Balance Sheet of the Federal Reserve B. Tools of Monetary Policy C. Monetary Policy, Real GDP and the Price Level D. Monetary Policy in Action Unit 5 Fiscal & Monetary Policy (3 weeks) A. Using Fiscal and Monetary Policy B. Taxation and Fiscal Policy C. Taxation and Productivity D. Interaction of Fiscal & Monetary Policy E. Monetarist/Keynesian F. Laissez Faire Economics versus the need for Regulation G. Budget Deficits and National Debt H. How Policies Influence Interest Rates I. How Policies Influence Inflation J. Aggregate Supply Curve Short Run versus Long Run K. Impacts of Fiscal and Monetary Policies L. Supply Shocks M. Inflation-Unemployment Tradeoff and the Phillips Curve N. Inflationary Expectations Chapter 18: Deficits, Surpluses and the Public Debt A. Deficits, Surpluses, and Debt: Definitions B. Budget Philosophies C. The Public Debt: Facts and Figures D. False Concerns E. Substantive Issues F. Deficits and Surpluses Chapter 16: Extending Analysis of Aggregate Supply A. From Short Run to Long Run B. Applying the Extended AD-AS Model C. The Inflation Unemployment Relationship D. The Long Run Phillips Curve E. Taxation and Aggregate Supply Chapter 10: Aggregate Expenditures A. Consumption and Investment Schedules B. Equilibrium GDP: C+I=GDP C. Other Features of Equilibrium GDP D. Changes in Equilibrium GDP and the Multiplier E. Adding International Trade F. Adding the Public Sector G. Equilibrium versus Full-Employment GDP H. Limitations of the Model Chapter 19: Disputes over Macro Theory and Policy A. Classical Economics and Keynes B. What Causes Macro Instability? C. Does the Economy Self-Correct? D. Rules or Discretion? Unit 6 Economic Growth (1 Week) A. Economic Growth B. Distribution of Income Chapter 17: Economic Growth and the New Economy A. Ingredients of Growth B. Production Possibilities Analysis C. US Economic Growth Rates

7 Unit 7 International Economics (2 weeks) A. Exchange Rates: Balance of Payments B. International Trade; Barriers to Trade C. International Payments System D. Impact of Domestic Policies on Trade Chapter 37: International Trade A. The Economic Basis for Trade B. Comparative Advantage: Graphical Analysis C. Supply and Demand Analysis of Exports and Imports D. Trade Barriers: Tariffs and Quotas The Case for Protectionism Chapter 38: Exchange Rates, Balance of Payments, & Trade Deficits A. Financing International Trade B. The Balance of Payments C. Flexible Exchange Rates D. Fixed Exchange Rates E. International Exchange Rate Systems F. Recent US Trade Deficits Major Assignment: International Trade and Wages: Students are to read the article More Pain than Gain from The Economist and write a paper giving their economic analysis on the issue of Offshoring and Protectionism. The analysis should include a discussion of the following topics- white collar versus blue collar jobs, wage variances between countries, adjusting wages to account for cost of living, marginal analysis- or cost/ benefit analysis, international trade, comparative advantage, absolute advantage, standard of living, production possibilities curve and it s relationship to international trade. Final Exam-Good Luck

8 4 Important notes: 1. We are practicing all year for students to have a chance to pass the Advanced Placement test. If a proctor reports to me that a student puts their head down without making a legitimate attempt on any section of this exam this is treated as the most important assignment of the year and will affect their ACADEMIC grade. It is grounds for a GRADE OVERRIDE to an F for that 9 weeks regardless of where that student currently stands academically. 2. During the review month right before the AP exams there will be multiple test weight assignments given in any given week. This has the potential to impact a student s grade significantly, both positively and negatively, as the tests are geared toward a student s ability to get a 3 on the AP exam. As we will be reviewing for 2 AP tests, any test given whether Government or Macroeconomics will count toward their current semester grade regardless of the subject. 3. Essays and free response questions are a major component of the AP exam. One of the best practices given by the college board is for students to exchange papers and grade each other so they are prepared for the procedures that the college board uses when grading their test at the end of the year. This will increase the likelihood of them passing the exam. I use this strategy extensively in my class, however if a student ever disputes the grade they received they can appeal to me and I will reexamine the paper and revise the grade up or down accordingly. 4. As a former coach, I realize that extracurricular activities and academy activities are important. However, your PRIMARY responsibility is to be in class at all times. If there is a school approved field trip and we get an from activities saying to release you, you must go. PLEASE do not ask to be released for anything other than an official school administration (not teacher) sanctioned activity for which your sponsor has submitted the proper paperwork. my sponsor says we need to practice because such and such activity is coming up is unacceptable. IF YOU ARE ABSENT FROM CLASS WITHOUT PRIOR PERMISSION FROM ME, YOU WILL BE GIVEN A REFERRAL. AP Macroeconomics Exam- Wed May 15 th noon *This Syllabus is subject to change* *Your signature indicates that you have reviewed the Syllabus, classroom policies and procedures and the POINTS SYSTEM* Students Name- Print Students Signature Parent/Guardian Name

9 Parent/Guardian Signature Parent/Guardian Phone num Syllabus addendum: Mr. Krause Testing Grade override policy. All, In an effort to allow each student every opportunity to demonstrate their knowledge, we will be immediately instituting an AP testing override policy. This can possibly apply to any student who gets a grade that did not accurately reflect their ability on the test based upon the results of the AP exam. This policy will apply to all students in every grade in my class. Note This can only help you The opposite is not true where a student comes in with an A and fails the AP test as long as they put in a legitimate effort. (As per my syllabus, a students can be failed for the 9 weeks regardless of grade if they fall asleep without putting forth a legitimate effort on the exam) The policy is as follows. Student who has a B and gets a 5 can be overridden to an A Student who has a C and gets a 3 or 4 can be overridden to a B if they get a 5 to an A Student who has a D or an F and gets a 3 can be overridden to a C 4 can be overridden to a B 5 can be overridden to an A. I am excited about this new policy as it will provide an incentive for students to work and study all the way through the test regardless of academic standing, and enables those students who possibly slacked off at any point during the year to recover academically through hard work and effort. I think it also perfectly aligns all parties (school, parent, teacher, and student) to pursue the same ultimate goal, which is to pass the advanced placement tests and receive college credit. Thank you very much for reading this addendum to the syllabus. Parent Student Date Parent/Guardian (if applicable)

10 AP Macro Economics Syllabus COURSE OVERVIEW Advanced Placement Economics is a one semester block schedule course designed for students who wish to take the AP Macroeconomics Exam. The course is designed to replicate the introductory macroeconomics course taught in a university setting. It has three main objectives: 1. to introduce students to the study of macroeconomics 2. to teach basic economic concepts and analytical skills 3. to enable students to score well on the AP Macroeconomics exam The course will be conducted in a lecture/seminar manner. Frequently students will research a topic and present it to the class. All students will be expected to keep up their reading and to demonstrate their preparedness by active participation in class discussions. Every week students will be given test and quizzes from the required readings. Students will also be required to write free response questions and essays on a weekly basis. ATTENDANCE Attendance is a very important aid to successful completion of the course. Students in the Advanced Placement course must make a commitment to be in class. Participation in class discussions is essential for all students. GRADES Grades will be based on a point system with the following assigned weights: Chapter Tests 50% Essays 25% Class and Homework Assignments 25% Total 100% TEXTBOOK McConnell, Campbell R., and Stanley L. Brue. Economics: Principles, Problems, and Policies, 16 ed. New York: McGraw Hill, Inc

11 ALTERNATE TEXTBOOK Bade, Robin, and Parkin, Michael. Foundations of Economics: AP Edition. Boston: Pearson Addison Wesley, Inc WORKBOOK Morton, John, S., and Goodman, Jean, B. Advanced Placement Economics: 3 rd Edition. New York: National Council on Economic Education, Inc STUDY GUIDE Walstad, William, B., and Bingham, Robert, C., Study Guide to Accompany McConnell and Brue Economics: Boston. McGraw Hill, Inc., 2005 OUTSIDE READING REQUIREMENT Students will be required to read articles in news related magazines such as Time, Newsweek, or U.S. News and World Report. Students will also be required to read: Buchholz, Todd. New Ideas From Dead Economists. New York: Plume, This book consist of a series of brief biographies written with a touch of humor, and it is an excellent introduction to the development of economic thought. GRAPHS Students will be responsible for assignments that require the construction, interpretation, and analysis, of the following graphs. A. Increasing, constant, and decreasing opportunity cost B. Movement along demand and supply curves C. Equilibrium quantity and price D. Elasticity of demand and supply E. Phases of business cycle and circular flow of economic activity F. Simple Keynesian model G. Equilibrium and disequilibrium in the Keynesian model H. Investment demand curve I. Aggregate demand and aggregate supply J. Shifts in aggregate supply and demand K. SRAS and LRAS L. Production possibilities curves

12 M. Money demand N. Money market O. The money market, investment, and aggregate demand P. Loanable funds market Q. Short run and long run Phillips curve R. Foreign exchange market COURSE OUTLINE UNIT 1: AN INTRODUCTION TO ECONOMICS (4 WEEKS) Topic I: Basic Economic Concepts A. Explain why scarcity is so important to economic thought. B. Describe, define, and compute opportunity cost. C. Construct and interpret production possibilities schedules, and graphs. D. Define and calculate absolute and comparative advantage. E. Explain the functions of any economic system. Topic II: Demand, Supply, and Price Determination A. Define and illustrate supply and demand through schedules and graphs. B. Explain the law of demand and the law of supply. C. Illustrate graphically a change in demand versus a change in quantity demanded. D. Illustrate graphically a change in supply versus a change in quantity supplied. E. Identify and explain the variables which cause a change in supply and demand. Topic III: Equilibrium Price and Quantity A. Define and illustrate equilibrium through schedules and graphs. B. Define and illustrate surpluses and shortages. C. Interpret the effects of surpluses and shortages on prices and quantities. KEY WORDS OR TERMS Students will be required to describe and apply the following key words or terms when interpreting graphs and answering free response questions: economics, factors of production, microeconomics, macroeconomics, positive economics, normative economics, ceteris paribus, fallacy of composition, scarcity, opportunity cost, model production possibilities, constant cost, law of increasing opportunity cost, absolute advantage, comparative advantage, specialization, terms of trade, demand, law of demand quantity demanded, market demand, substitutes, complements, normal goods, inferior

13 goods, supply, law of supply, quantity supplied, market equilibrium, equilibrium price, equilibrium quantity, business cycle, recession, trough, recovery, unemployment, inflation, economic growth READING REQUIREMENTS A. McConnell, Chapters 1,2,3. B. McConnell, Chapters 4,5,6. C. Excerpt from The Wealth of Nations, Adam Smith. New Ideas From Dead Economists. D. The Angry Oracle Called Karl Marx, New Ideas From Dead Economists. E. Malthus, Prophet of Doom. New Ideas From Dead Economists.. ASSIGNMENTS A. Study Guide to Accompany McConnell and Brue Economics, answer study guide questions from chapters 1,2,3, to prepare for the reading test. B. McConnell, reading test from chapters 1,2,3, C. Study Guide to Accompany McConnell and Brue Economics, answer study guide questions to prepare for the reading test from chapters 4,5,6, D. McConnell, reading test from chapters 4,56, E. Advanced Placement Economics, complete assignments from activities 1 8 applying the basic economic concepts. (Basic Economic Concepts) F. Present a visual to the class of a production possibilities curve that demonstrates the concepts of scarcity, choice, cost, absolute advantage, comparative advantage, economic growth, and economic efficiency. G. Write a three page paper explaining how a market economy answers the three basic economic questions. H. Unit Test UNIT 2: MEASUREMENT OF ECONOMIC PERFORMANCE (4 WEEKS) Topic I: Gross Domestic Product and National Income Concepts A. Explain how GDP is calculated using the expenditure approach. B. Explain how GDP is calculated using the income approach. C. Describe the problems with calculating GDP D. Compare real versus nominal GDP E. Describe NNP, NI, PI, DI. Topic II: Unemployment and Business Cycles

14 A. Describe the four phases of the business cycle. B. Explain how total spending affects the business cycle. C. Define unemployment and explain how it is measured. D. Describe four types of unemployment. E. Explain the problems with the unemployment rate. F. Explain full employment. Describe the impact that full employment has on the economy. Topic III. Inflation A. Explain the meaning of inflation. B. Explain how inflation is measured. C. Calculate the consumer price index. D. Explain the problems with the CPI. E. Compare demand pull and cost push inflation. F. Describe the consequences of inflation. KEY WORDS OR TERMS Student will be required to describe and apply the following key words or terms when measuring economic performance: Gross domestic product, intermediate goods, final goods, multiple counting, expenditure approach, income approach, personal consumption expenditures, gross private domestic investment, net private domestic investment, government purchases, net exports, national income, consumption of fixed capital, depreciation, personal income, disposable personal income, nominal GDP, real GDP, GDP deflator, peak, recession, trough, recovery, labor force, unemployment rate, frictional unemployment, structural unemployment, cyclical unemployment, full employment rate of unemployment, natural rate of unemployment, inflation, Consumer Price Index, demand pull inflation, cost push inflation, nominal income, real income, deflation. READING REQUIREMENTS A. McConnell, Chapters 7,8, B. McConnell, Chapters 9,10, ASSIGNMENTS A. Study Guide to Accompany McConnell and Brue Economics, answer study guide questions from chapters 7,8, B. McConnell, reading test from chapters 7,8,

15 C. Study Guide to Accompany McConnell and Brue Economics, answer study guide questions from chapters 9,10, D. McConnell, reading test from chapters 9,10, E. Advanced Placement Economics, complete activities 9 18 (Measuring Economic Performance) F. Write a three page essay comparing the expenditures and income approach to GDP. G. Write a three page essay comparing demand pull and cost push inflation. H. Write a three page essay explaining how unemployment is measured and describing the four types of unemployment. I. Select three articles from Time, Newsweek, or U.S. News and World Report pertaining to inflation, unemployment, and GDP. Prepare a 5 minutes oral presentation on the three articles. The student will also be prepared to answer questions pertaining to each of the articles. J. Unit test UNIT 3: MACROECONOMIC THEORY AND POLICY (6 WEEKS) Topic I: Compare Keynesian and Classical Theory A. Illustrate the consumption function. B. Explain the marginal propensities to consume and save C. Explain how the consumption function shifts and how it affects aggregate demand. D. Describe the role of the investment function. E. Explain why investment demand is unstable. F. Graph the aggregate expenditure function. Topic II. Keynesian Model in Action A. Explain the impact of government spending on aggregate demand. B. Graph recessionary and inflationary gaps. C. Calculate the spending multiplier. Topic III. National Income and Price Determination: Aggregate Demand and Aggregate Supply A. Describe the determinants of AD and AS. B. Graph changes in equilibrium price and quantity with the three ranges. C. Compare the classical and Keynesian view. Topic IV: Fiscal Policy/Public Sector A. Compare discretionary and automatic fiscal policy.

16 B. Describe the balanced budget multiplier. C. Describe supply side policies. D. Graph the Laffer Curve and describe the concepts. E. Explain three types of taxation. F. Compare federal deficits and national debt. G. Identify government size and growth. H. Identify government expenditure patterns. I. Analyze the impact of the deficits and the debt. Topic V: Money, Banking, and Monetary Policy A. Describe the three functions of money B. Explain what stands behind the U.S. dollar. C. Define the three money supply definitions. D. Explain how the FED is organized. E. Describe three tools of the FED F. Identify five powers of the FED G. Explain the money multiplier. H. Analyze the shortcomings of monetary policy. I. Illustrate, by graphing, how the demand for money affects the interest rates. J. Explain the monetarist view of money (MV=PY) K. Compare monetarist, Keynesian, and classical economics. Topic VI: The Phillips Curve and Expectations Theory A. Graph the Phillips curve. B. Explain the rational expectations theory. KEY WORDS OR TERMS Students will be required to describe and apply the following key words or terms when explaining aggregate economic activity: the utilization of resources within and across countries; and the critical evaluation of determinants of economic progress and economic decisions made by policymakers: crowding out effects, marginal propensity to consume, the multiplier effect, reasons for a downward sloping aggregate demand curve, determinants of aggregate demand, AS in the short an long run, sticky versus flexible prices and wages, determination of equilibrium output and price level, actual versus full employment, utilization of resources, marginal propensity to consume, marginal propensity to save, investment, multiplier, investment schedule, leakage, injection, real balances effect, interest rate effect, foreign purchases effect, aggregate demand, short run aggregate supply, equilibrium price level, equilibrium real output, functions of money, characteristics of money, measures of money, demand for money, the money market, the

17 creation of money, loanable funds market, organization of the Federal Reserve, tools of monetary policy, responsibilities of the Fed, quantity theory of money, M1, M2, M3, demand deposits, required reserves, excess reserves, federal funds rate, prime interest rates, discount rate, open market operations, monetary multiplier, nominal interest rate, real interest rate, FDIC, velocity of money, monetary policy and the aggregate demand/ aggregate supply model, fiscal policy and the aggregate demand/ aggregate supply model READING REQUIREMENTS A. McConnell, Chapters 11,12, B. McConnell, Chapters 13,14,15, C. McConnell, Chapters 16,17,18, D. Keynesian Theory, New Ideas From Dead Economists. ASSIGNMENTS A. Study Guide to Accompany McConnell and Brue Economics, answer study guide questions from chapters to prepare for the reading test. B. McConnell, reading test from chapters 11,12, C. McConnell, reading test from chapters 13,14,15, D. McConnell, reading test from chapters 16,17,18, E. Advanced Placement Economics, complete activities (Aggregate Demand/Aggregate Supply). F. Advanced Placement Economics, complete activities (Monetary Policy). G. Write a three page essay explaining how the FED is organized, its main functions, and how it implements monetary policy. H. Write a three page essay comparing the monetarist and the Keynesian view. I. Write a three page essay comparing classical economics with the rational expectations theory. J. Unit test UNIT 4: THE INTERNATIONAL ECONOMY (4 WEEKS) Topic I: A. Explain why nations trade C. Apply comparative and absolute advantage to international trade

18 D. Analyze arguments for free trade versus arguments for protectionism E. Describe balance of payments accounts F. Explain exchange rates and foreign exchange market G. Graph currency changes Topic II. Comparative Economic Systems A. Compare three types of economic systems B. Compare developed and developing countries C. Compare capitalism and socialism D. Describe the mixed economy of today E. Explain how to sustain economics growth in developing countries KEY WORDS OR TERMS Students will be required to describe and apply the following key words or terms when discussing international trade and finance: absolute and comparative advantage, balance of payments, foreign exchange markets, implications of foreign trade, tariffs, quotas, subsidies, trade deficit, trade surplus, depreciation, appreciation, General Agreement on Tariffs and Trade, World trade Organization, North American Free Trade Agreement READING REQUIREMENTS A. McConnell, Chapters 37,38, B. McConnell, Chapter 39, ASSIGNMENTS A. Study Guide to Accompany McConnell and Brue Economics, answer study guide questions from chapters to prepare for the reading tests. B. McConnell, reading test from chapters 37,38, C. McConnell, reading test from chapter 39, D. Advanced Placement Economics, complete activities (International Economics) E. Write a three page essay describing comparative and absolute advantage. Provide at least 3 examples with each. F. Write a three page essay discussing free trade versus protectionism. G. Advanced Placement Economics, answer 8 free response questions (International Economics)

19 H. Answer 4 long free response questions in the Advanced Placement Economics workbook. I. Select three articles from Time, Newsweek, or U.S. News and World Report pertaining to international trade. The articles must be related to the debate between protectionism versus free trade. Prepare 5 minutes oral presentation on the three articles. The students will also be prepared to answer questions pertaining to each of the articles. J. Unit test GROUP PROJECT: Economic Schools of Thought There is much disagreement among economists about how the macroeconomy operates. This leads to many disagreements regarding how an economy should be managed. The purpose of this project is, in groups of four to five students, to research, analyze, and present different economic schools of thought. Each student is required to present one of the following economic schools of thought: A. Classical B. Keynesian C. Monetarist D. Supply side E. New Classical (Rational Expectations) The analysis should be based on the following components: A. Overview of economic school of thought B. Indication of degree of government intervention C. Role of business and investment D. Role of budgets and deficits E. Effects of taxes F. Perspectives on inflation G. Ideas regarding international trade H. Requirements for growth

20 The presentations will be 30 minutes long. The student will also be required to submit a five page essay. The worth of this project will be equivalent to four test grades. A detailed rubric will be furnished.

21