Advanced Placement Macroeconomics

Transcription

1 Advanced Placement Macroeconomics Introduction Welcome to AP Macroeconomics! This is a challenging course; taught at the college level, this course requires that you operate at a level higher than what you might normally experience in a regular high school classroom. My intent is for you to gain the understandings noted below under purpose and to prepare you for the Advanced Placement Macroeconomics test given sometime during 4 th quarter, should you choose to take it. By passing that test, you can earn college credit at universities wherein the successful results of your exam are accepted. (In addition, some universities consider that just taking and passing such a strenuous course is worth note.) In any event, pass or fail, working hard on this course will enhance your intellectual and academic development who knows, some day your advanced grasp of economics may also make you wealthy. You have accepted the challenge of this course by virtue of enrolling in it stay focused and you will reap the rewards. Purpose The purpose of this course is to give students a thorough understanding of the principles of economics that apply to an economic system as a whole. This course places particular emphasis on the study of national income and price level determination, and also develops students familiarity with economic performance measures, the financial sector, stabilization policies, economic growth, and international economics. Expectations My expectations are simple: 1) You are responsible for your own learning and actions and 2) The dignity and worth of every individual in this course is to be respected. Text Campbell R. McConnell, Stanley L. Brue, Macroeconomics, 16 th ed. Boston: McGraw Hill/Irwin, 2006 Campbell R. McConnell, Stanley L. Brue, Study Guide to Accompany Macroeconomics, 16 th ed. Boston: McGraw Hill/Irwin, 2006 John Morton, Advanced Placement Economics Macroeconomics Student Activities, 3 rd ed. New York: National Council on Economic Education, 2003.

2 Assignments and Learning Activities All reading assignments, unless otherwise noted, are from the McConnell and Brue text (referred to as M&B). Assigned questions from the McConnell and Brue text accompany each reading assignment. Peer and instructor review of assignments conducted in class. Additional student in class and at home assignments will come from the study guide that accompanies this text. Students will conduct in class practice with concepts from the Morton workbook. Federal Reserve Essay Contest: Students are required to write (actual submission to the Fed is optional) the current Federal Reserve essay. Project is due at the end of the course. Alternatively, students may select from previous year s essay projects and submit. Students will include graphic analysis of the issue involved and a bibliography of sources. Assessments 1. Key Graphs: Students will be required to construct, without notes, key graphs from chapters of study. Students will also be required to explain what the graph shows. (CR9) 2. Focus Question: Students will be given a focus question an essay question on a main concepts of the unit of study to be answered in written format. Typically, this will be a Free Response Question from a previous AP Macroeconomics exam. Supporting graphic analysis required. (CR9) 3. Chapter Test: Tests evaluating student understanding of topics will be given at the end of each unit of study. The test will consist of multiple choice and short answer questions regarding that topic s contents as well as previous content.

3 Unit I. Economics and the Economy: An Introduction Topic 1.Nature and Method of Economics. McConnel and Brue, (M&B) Chapter 1 Answer questions 3, 8, 10, 11, 12. Complete web based question #17, prepare for oral discussion. Scarcity, Marginal analysis, ceteris paribus, trade offs, utility, macro and micro economics, fallacy of composition (CR1) Interpreting and constructing Graphs. (CR9) Answer appendix question 3 and 4 on page 20. Topic 2.The Economizing Problem M&B Chapter 2 Questions 4,5,6, 9, 10, 11. Complete web based question #19, prepare to demonstrate your answer in class. Full employment, productive and allocative efficiency, production possibilities (CR1),, (CR8) Production possibilities curve (CR6), circular flow diagram (CR9) Topic 3.Markets: Supply and Demand Chapter 3 Questions 2, 5, 7, 8, 13. Complete web based question #18, prepare to demonstrate your findings in class. Market, demand and supply, demand / supply schedule, law of demand / supply, diminishing marginal utility, determinants of demand / supply, complementary and substitute goods, change in demand / supply, changes in quantity demanded / supplied, equilibrium, shortage, surplus, price floors and ceilings (CR1) equilibrium price and quantity, changes to equilibrium price and quantity (CR9) Topic 4.The Market System Chapter 4 Questions 7, 10, 11, 12. Prepare an answer to web based question #14 for class discussion. Free enterprise, money, four fundamental questions, invisible hand, division of labor, consumer sovereignty (CR1) Topic 5.The U.S. Economy Chapter 5 Questions 2,9, 10, 15. Prepare an answer for web based question #17 for class discussion. Legal forms of business, Public sector, government finance circular flow and the public sector (CR9) Unit I Additional Learning Activities: The Econo circular flow simulation and A Market in Oil from the National Council on Economic Education. Activity 2 Demand Curves, Moves Along Demand Curves, and Shifts in Demand Curves, Activity 3 Supply Curves, Moves Along Supply Curves, and Shifts in Supply Curves Unit 1 of Basic Economic Concepts from Morton, Advanced Placement Economics Macroeconomics Student Activities (CR9)

4 Unit II. Macroeconomic Measurement, Models, and Fiscal Policy Topic 1.Measuring Domestic Output and National Income Chapter 7 Questions 3, 8, 11, 12 GDP, income and expenditures approach, nominal and real GDP (CR2), (CR3) Flows of expenditures and incomes (CR9) Topic 2.Intro to Economic Growth and Stability Chapter 8 2, 4, 6, 8, 11 Business cycle, types of unemployment, inflation, redistribution (CR2), (CR3), (CR5) Actual and potential GDP and the unemployment rate (CR9) Topic 3.Basic Macroeconomic Relationships Chapter 9 Questions 5, 7, 8, 9 Income vs consumption and saving, multiplier effect (CR3) Consumption and saving, the investment demand curve (CR9) Topic 4.Aggregate Demand and Supply Chapter 10 and Chapter 11 Ch 10: 2, 9, 12, 13; Ch 11: 4, 5, 6, 7 AD and AS, AD/AS equilibrium, full employment GDP (CR3), (CR6), (CR8) Equilibrium GDP, Recessionary and inflationary gaps in aggregate expenditures, AD/AS equilibrium price level (CR9) Topic 5.Fiscal Policy Chapter 12 Questions 2, 3, 7, 10 Expansionary and contractionary fiscal policy, sabilizers, full employment budget (CR1), (CR3), (CR5), (CR8) Expansionary and contractionary fiscal policy, full employment deficits, crowding out effects, net export effects (CR9) Unit II Additional Learning Activities: Activity 7 Numbers That Make News, Activity 11 Price Indexes, Activity 12 Who Is Hurt and Who Is Helped by Inflation, Activity 14 The Business Cycle, Activity 18 The Equilibrium Price Level and Equilibrium Output, Activity 19Long Run Aggregate Supply (LRAS) and the Production Possibilities, Activity 21 & Activity 22 Full Employment in a Capitalist Economy, Activity 43 Monetary and Fiscal Policy, Activity 44 Graphing Monetary and Fiscal Policy Interactions, Activity 45 Crowding Out: A Graphical Representation, Activity 46 Economic Growth and the Determinants of Productive Capacity, Activity 47 The Expansion of the 1960s, Activity 48 The Inflation of the 1970s, Activity 49 Supply Side Economics, Budget Deficits, and Tax Changes. These activities from Morton, Advanced Placement Economics Macroeconomics Student Activities (CR9)

5 Unit III. Money, Banking, and Monetary Policy Topic 1.Money and Banking Chapter 13 Questions 4, 6, 7, 9, 13 Function of money, defining money (M1, 2, 3), supply of and demand for money, Federal Reserve system (CR4) Demand for money and the money market (CR9) Topic 2.The Money Creation Process Chapter 14 Questions 2, 4, 8, 13. Complete web based question #17 and prepare for class discussion. Balance sheets, deposits expansion (CR4) A check s journey through the Federal Reserve (diagram), expansion of money supply (table) (CR9) Topic 3.Monetary Policy Chapter 15 Questions 2, 3, 6, 8, Open market operations, reserve ratio, the Discount rate, easy and tight money policies, monetary policy (CR4) Monetary Policy and equilibrium GDP, diagram the process of Open Market Operations, AD / AS theory of the price level/real output/stabilization (CR9) Unit III Additional Learning Activities: Activity 34 Money Is What Money Does, Activity 35 What s All This about the M s?, Activity 36 The Monetary Equation of Exchange, Activity 37 The Multiple Expansion of Demand Deposits, Activity 38 Reserve Requirements and the Multiplier, Activity 39 The Federal Reserve System and Monetary Policy, Activity 40 Monetary Policy. These activities from Morton, Advanced Placement Economics Macroeconomics Student Activities (CR9) Unit IV. Long Run Perspectives and Macroeconomic Debates Topic 1.Extended Analysis of Aggregate Supply Chapter 16 Questions 1, 2, 3, 4, 6, 8 Short and long run, inflation unemployment relationship, taxation and incentives (CR1), (CR5) Short Run and Long Run AS (CR6), The Phillips Curve (CR5) (CR9) Topic 2.Economic Growth Chapter 17 Questions 1, 3, 5, 6, 9 Production possibilities, Productivity (CR1) PP and long run aggregate supply, economic growth and the AD AS model (CR6), (CR9) Topic 3.Deficits, Surpluses, and Debt Chapter 18 Questions 1, 3, 6, 7, 9 Deficit, surplus, debt, balanced budget, social security (CR1) Investment demand curve and the crowding out effect (CR9) Topic 4.Disputes About Macro Theory and Policy

6 Chapter 19 Questions 1, 4, 7, 13 Classical Economics and Keynesian Economics, monetaristism, rational expectations theory (CR1), (CR8) Compare classical and Keynesian views of macroeconomy, new classical view of self correction, rationale for a monetary rule (CR5), (CR9) Unit IV Additional Learning Activities: Activity 41 Graphing Keynesian Monetary Policy, Activity 42 Monetarist Monetary Policy. These activities from Morton, Advanced Placement Economics Macroeconomics Student Activities (CR9) Unit V. International Economics and the World Economy Topic 1.International Trade Chapter 37 Questions 1, 3, 4, 6, 7, 9. Complete web based question #13 and prepare for class debate. Comparative advantage, exports and imports, equilibrium world price, trade barriers, protectionism, the WTO (CR7),(CR8) Trading possibilities and gains from trade, US export supply and import demand, economic effects of a protective tariff or an import quota. (CR7), (CR8), (CR9) Topic 2.Exchange Rates and Balance of Payments, trade deficits Chapter 38 Questions 1, 2, 3, 6, 9. Complete web based question #14 and prepare for class debate. Balance of payments, flexible and fixed exchange rates (CR7), (CR8) US balance of payments (table), foreign currency market, adjustments to foreign currency markets (CR7), (CR8), (CR9) Unit V Additional Learning Activities: Determining Comparative Advantage, The Gains from International Trade, Barriers to Trade, Using Supply and Demand to Analyze Exchange Rates from Morton, Advanced Placement Economics Macroeconomics Student Activities (CR9)