AP Economics Pacing Guide Course Description: The purpose of AP Macroeconomics is to understand the principles of economics that apply to an economic system as a whole. The course will explore the study of national income, price determination, measures of economic growth, international finance, exchange rates, and balance of payments. EOC AP/IB VOCATS Teacher-made final exam Pages are from McConnell/Brue Fifteenth edition Day Date Chapter References Essential Questions Content Tasks/Strategies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Course syllabus and McConnell/Brue text Chapter 1: The Nature and Method of Economics Appendix and Chapter 2: The Economizing Problem Chapter 3: Individual Markets Demand and Supply Note: Teachers should check school administration for policies and procedures on the use of outside movies and movie clips and fill out appropriate paperwork. What are the expectations of the course? What is economics? Describe economic thinking. Why study economics? between Micro and Macroeconomics? between a want and need? What is opportunity cost? What is full employment vs. full production, allocative and productive effciency? What is a possibilities curve? What is the dfference between a Market and Command System What is the Circular Flow Model? What is the law of demand? What is the law of supply? between change in demand and quantity demanded supply and quantity supplied? What are the determinants of demand and supply? What is equilibrium price and quantity? What is the function of price? Economic perspective, scarcity, choice, rational behavior, marginalism. Economic methodology, pitfalls to objective thinking Unlimited wants, scarce resources, employment and efficiency, opportunity costs, possibilities curve, Market system, Command system, circular Flow Model Markets, Law of Demand, demand curve, change in demand, change in quantity demanded, Law of Supply, supply curve, change in supply, change in quantity supplied, Market Equilibrium, surplus, shortage, price Students will answer Key Questions 1,5,7,8,9,at the end of the chapter and share in daily class discussion of the issued raised. Conduct seminar discussion on what economic goals the United States should pursue. Identify and form graphs to illustrate simple economic principles of possibilities curves and the concept of scarcity using school data. Student will read articles from the Wall Street Journal (WSJ) and share issues relevant to scarcity, and opportunity cost. Web-Based assignment: go to www.bls.gov and retrieve data for the last 10 years of employment. www.bls.gov Quiz Chapters. 1&2 Students will answer Key Question 5,7,8 at the end of chapter 3. Students will submit a written current event assignment using the WSJ focusing on demand/supply. Web-Based question: have students go to www.census.gov and examine the change in demand for baby diapers and retirement villages. Test Chapters 1,2,3 19 20 Chapter 4: The Market System What are characteristics of the Market system? What are the four fundamental questions of any economic system? Private property, freedom of choice, self-interest, competition, specialization Students will research Adam Smith review Wealth of Nations for an informal class discussion. wcpss.c&i.2003-2004
What will be produces? 21 How will goods and services Students will review Key Characteristics of the Market Questions 7, & 9 from chapter be produced? system, the Market system 4 and share in class. For Whom will goods and 22 Chapter 4 at work, competition and the Web-Based question: have services be produced? Invisible Hand" students go to Ebay and click continued, How do households receive on the category jewelry and income? How do households gemstones. Then have 23 Households as income spend income? students determine how many receivers and spenders, the What are durable/ nondurable diamonds, rubies sapphires Chapter 5:The U.S. business population, legal 24 goods and services? and opals are for sale. Ask Economy: Private forms of business, the public how competition influences What are legal forms of sector, federal, state and the market and prices. and Public sectors business? local finance. Have students do Key 25 What is the government s role Question 15 Chap.5 in class. in the economy? International linkages, Web- Based question: have How is the U.S. economy students go to 26 Chapter 6: The patterns of U.S. world trade, linked with the rest of the www.census.gov specialization, and United States in the world? Find the table that ranks the comparative advantage, Global Economy What is specialization and states by tax revenue and 27 foreign exchange market, expenditures per capita. comparative advantage? multilateral trade Where does your home state What is the foreign exchange agreements, free-trade rank in each category? market? zones. Global competition Students will analyze recent 28 Why does the U.S. have trade trade agreements and discuss agreements? pros and cons of each. Guest Speaker- legislator Test Chapters 4,5,6 29 30 Guest speaker-member of commerce department state government 31 32 33 34 35 36 37 38 39 40 41 42 Chapter 7: Measuring domestic Output, National Income, and the Price Level Chapter 8: Introduction to Economic Growth and Instability Chapter 17:Economic Growth and the New Economy What is Gross Domestic Product (GDP) and how is it measured? What is nominal GDP/real GDP? What is the consumer Price Index? What is economic growth? What is the business cycle? What are the different types of unemployment? What is inflation? What are two types of inflation? in nominal and real income? How does inflation effect individuals and businesses? What are ingredients for growth? What is the U.S. growth rate? How do we account for growth? What are characteristics of the new economy? Is growth desirable or sustainable? Gross Domestic Product, Income and expenditure approach, other national accounts, nominal vs. real GDP, consumer price index Rule of 70, Business cycle, (peak, recession, trough, recovery) full employment, unemployment, discouraged worker, Okun s Law,, Demand-pull inflation, Costpush inflation, deflation, hyperinflation, fixed-income, flexible-income, redistribution of income, national income, real income Supply, demand and efficiency factors, Labor and productivity,, economies of scale, technology, education and training Students will read articles from the WSJ and write a current event assignment that analyzes and evaluates the economic health of the U.S. Assign Key questions 8,11 & 12 from chapter 7 and have students share answers in class. Web-Based assignment: Go to www.oecd.org and rank the top 10 countries GDP and Purchasing power. From chapter 8, have students do Key Questions, 2,4,8, & 10 and share in class. Web-Based question: Go to www.bls.gov and look at the current unemployment data. Then find the current figures for official CPI. Have students research the new economy and conduct a seminar to discuss the desirability of growth. Guest Speaker- local business person Test Chapters 7,8, 17 43 44 Review material so far and Mid-Term Assessment
45 46 47 48 49 50 51 52 53 54 55 Chapter 9: Building the Aggregate Expenditures Model Chapter 10: Aggregate Expenditures: The Multiplier, Net Exports, and Government Chapter 11: Aggregate Demand and Aggregate Supply What determines the level of GDP? What causes real GDP to rise in one period and to fall in another? What is the relationship between incomeconsumption and income saving? What is marginal propensity to consume and marginal propensity to save? What is investment and how does it relate to GDP? What is equilibrium GDP? What is Say s Law? What is the multiplier effect and how does it effect GDP? How do international trade, government purchases, and taxation effect equilibrium GDP? What is a recessionary gap and inflationary gap? What is aggregate demand/supply? How does the aggregate demand/supply curve slope? What determinants effect demand/supply? How does demand/supply effect equilibrium? Income-Consumption, Income-Savings, Average and Marginal Propensities, Investment, Equilibrium GDP, Say s Law Multiplier effect, International Trade and Equilibrium output, the public sector, equilibrium versus full-employment GDP Aggregate Demand, Aggregate Supply, changes in equilibrium From chapter 9, have students do Key Questions 5,7,9, 10 and share in class. Have one student define Say s Law and relate this to the possibilities curve from chapter 2. Web-Based Question: have students go to www.federalreserve.gov and find The Beige Book. Allow students to compare consumer spending in the district where they live with consumer spending in the entire U.S. economy. Students should do Key Questions 2, 5, 8,10 from chapter 10 and share with the class. Web-Based Question: go to www.stls.frb.org and compare potential GDP with actual GDP for the fourth quarter of 1991 Have students share Key Questions 4,5,7,and 8 from chapter 11. Test Chapters 9.10 11 56 57 58 59 60 61 62 63 64 65 66 67 Chapter 13: Money and Banking Chapter 14: How Banks and Thrifts Create Money Chapter 15: Monetary Policy What is the definition of Money? What is the function of Money? What backs the Money supply? What is the supply and demand for money? What is the role of the Federal Reserve in the banking system? What is the history behind The Goldsmiths? How do banks create money? How are banks formed? What is the banking system and how does it work? What is the monetary multiplier? What is the reserve requirement? What are leakages in the banking system? Is there a need for monetary control? What is the goal of monetary policy? What are tools of monetary policy? What is the role of the Federal Reserve in setting monetary policy? What is easy/tight monetary policy? M1, M2, M3, credit cards, Function of money, asset demand, money demand, the money market, Federal Reserve System, electronic transactions The Goldsmiths, balance sheet of a commercial bank, asset and liability, profit, reserve requirement, loans, monetary multiplier, monetary control Open-Market operations, reserve requirement, discount rate, effects of easy and tight money, monetary policy, real GDP, and the price level, effectiveness of monetary policy, strengths and short-comings of monetary policy, monetary policy and the international economy This unit presents an excellent opportunity for guest speakers. A local banker discussing how to start a bank and a member of the state banking commission can provide depth and insight for this unit. A field trip to the Charlotte branch of the Federal Reserve will provide fabulous hands on experiences Students should do Key Questions 6 & 7 from chapter 13 and share in class. From chapter 14, have students do Key Questions 2, & 4 and share. Have students share Key Questions 3, 4, & 6. From chapter 15 Have student seminar on the need for monetary control. www.fdic.gov and use the directory to look up financial profiles of their personal bank or one in their community. Test Chapters 13,14,15
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 Chapter 12: Fiscal Policy Chapter 18: Deficits, Surpluses, and the Public Debt Chapter 16: Extending the Analysis of Aggregate Supply This pacing guide was developed by Marion O'Quinn of Cary HS. She can be reached at moquinn@wcpss.net Chapter 37: International Trade Chapter 38:Exchange Rates, the Balance of Payments, and Trade Deficits Chapter 19: Disputes over Macro Theory and Policy Review basic concepts of Macroeconomics to prepare for the AP Macro test in May What is fiscal policy? What are legislative mandates? between expansionary and contractionary fiscal policy? When is each used? What are built-in stabilizers and how do they work? How do you evaluate fiscal policy? What are problems and criticism in enacting and applying fiscal policy? What are leading indicators? Define and explain deficits, surpluses, and debt? What are some budget philosophies? What are false and substantive issues regarding national debt? What are options for surpluses? between short-run and lingrun aggregate supply? How does the extended AD-AS model help to explain the effect of demand-pull/costpush inflation? What is the Phillips Curve? What is the Laffer curve? How do these curves and models help politicians shape fiscal policy? What is the economic basis for trade? What is comparative advantage? What are the arguments for free trade/protectionism? What are trade barriers? What is the purpose and role of the World Trade Organization? How will international trade be financed? What is balance of payments? What are exchange rates and how do they appreciate or depreciate U.S. dollars? What are current international exchange-rate systems? Should recent U.S. trade deficits cause concern? What are Classical and Keynesian theories? What causes instability in the economy? Is the economy self-correcting? Should government adhere to rules or use discretion in setting economic policy? How do you measure economic performance? What is national income and price determination? What is international economics and growth? Legislative mandates, fiscal policy, (expansionary and contractionary), deficits and surpluses, built-in stability, full-employment, lags, crowding-out effect, leading indicators Deficits, surpluses, debt, concerns and substantive issues regarding public debt, options for surpluses Short run, long-run aggregate supply, demandpull, cost-push inflation, phillips curve, laffer curve Comparative advantage, terms of trade, gains from trade, case for free trade, equilibrium world price, trade barriers, case for protection Balance of payments, exchange rates (flexible and fixed) international exchange-rate systems, trade deficits The classical view, the Keynesian view, monetarist view, mainstream view, realbusiness-cycle view, macro instability, self-correcting, rules or discretion Scarcity, Opportunity costs, aggregate supply and demand, Money and banking, monetary policy, fiscal policy, international trade, economic growth This unit presents the opportunity to invite a government official that works with the budget to explain how elected officials prepare state/county budgets. From chapter 12, have students work together to answer Key Questions 2 & 3. www.conference-board.org and check the summary of the index of leading indicators. Then go to www.cbo.gov and check the prospects for future deficits or surpluses. Have students work together to answer Key Questions 3 & 7 from chapter 18. Web- Based question: go to www.publicdebt.trea s.gov and record the current amount of public debt to the penny. Students should share Key Questions 6 & 8 from chapter 16. Have student find current news article discussing fiscal policy and share in class. Test Chapters 12,18, 16 From chapter 37, have students work together and share Key Questions 4 & 6. www.wto.org to retrieve the latest news. List and summarize three recent important news stories. Have students do Key Questions 2 & 6 from chapter 38 and share in class. Web- Based questions: go to www.census.gov click on indicator/www/trade and find the latest figures on U.S. trade. Then go to www.federalreserve.gov and check exchange rates for five countries. Test chapters 37 & 38 Divide the class into groups to research and prepare a PowerPoint presentations on one of the alternative macroeconomic views. There will be no test for this chapter. The group will receive a grade for their research and oral presentation. Have student take practice AP test both free response and multiple choice questions. Identify topics, which need additional strengthening. Review FINAL ASSESSMENT