Welcome to A.P. Macroeconomics!
Teacher: Mrs. Ungeheier
Academic Assistance:
Phone: (951) 834-9190, ext. 1108
E-mail: :
Class Website: http://cungeheier.pbworks.com/AP-Macroeconomics
School Website: http://www.cccsmurrieta.com/secondary/classroom.asp?id=98
Grades Website: CCCS Net Classroom
https://grades.cccsmurrieta.com/NetClassroom7/Forms/login.aspx?ReturnUrl=%2fNetClassroom7%2fDefault.aspx
Available: 1:30 – 3:00 p.m. (M-Th) Rm. 108
Course Overview
The A.P. Macroeconomics course is designed to give students a thorough understanding of how the principles of economics apply to the whole economic system. Macroeconomics is the study of individual decision makers within an economy. The main areas of study include basic economic concepts; the nature and functions of product markets, factor markets, and the role of government. Emphasizing economic principles as applied to the economy as a whole. Lessons will focus around analysis of national income and its components, economic indicators, inflation and unemployment, money and banking, stabilization policies, and the United States’ role in world trade. This course will enable the student to integrate economic concepts into their everyday experiences which will allow them to see the world in a fresh perspective and new light.
Textbook:
Krugman, Paul and Robin Wells. Macroeconomics. New York: Worth Publishers. 2006
(ISBN: 071675228X)
Supplements and Media:
Kelly, Elizabeth Sawyer, and Rosemary Cunningham. Macroeconomics Study Guide. Worth Publishing. 2006.
Krugman/Wells Companion Website for Students: http://bcs.worthpublishers.com/krugmanwellsmacro/
Morton, John and Rae Jean Goodman. Advanced Placement Economics. National Council on Economic Education: New York. 2003
Helpful Websites:
Reffonics http://www.reffonomics.com/textbook/macroeconomics.html
David Mayer’s website: http://tw.neisd.net/webpages/dmayer/files/presentation%20resources.htm
Economic Education Station http://web.centre.edu/econed/
Economist.com http://www.economist.com/
Class Rules: Grading Scale
In order to maintain a good testimony: Tests 40%
1. Come to class on time. Homework 20%
2. Come to class prepared and ready to learn. Project 20%
3. Be respectful of others around you. Quizzes 10%
4. Adhere to school rules in regards to electronic Class Work 10%
devices, gum, food, and drinks.
AP Course
The Advanced Placement Program® (AP) is a collaborative effort among motivated students; dedicated teachers; and committed high schools, colleges, and universities. Since its inception in 1955, the Program has enabled millions of students to take college-level courses and exams, and to earn college credit or placement, while still in high school.
Most colleges and universities in the United States, as well as colleges and universities in more than 40 other countries, have an AP policy granting incoming students credit, placement, or both on the basis of their AP Exam grades. Many of these institutions grant up to a full year of college credit (sophomore standing) to students who earn a sufficient number of qualifying AP grades.
Each AP course has a corresponding exam that participating schools worldwide administer in May. AP Exams contain multiple-choice questions and a free-response section (essay, problem solving, or oral response). The Readers’ scores on the free-response questions are combined with the results of the computer-scored multiple-choice questions; the weighted raw scores are summed to give a composite score. The composite score is then converted to a grade on AP’s 5-point scale:
AP GRADE QUALIFICATION
5 Extremely well qualified
4 Well qualified
3 Qualified
2 Possibly qualified
1 No recommendation
The AP Credit Policy Info online search tool provides links to credit and placement policies at more than 1,000 colleges and universities. The tool can help you find the credit hours and advanced placement you can receive for qualifying exam scores within each AP subject. AP Credit Policy Info is available at www.collegeboard.com/ap/creditpolicy.
AP Macroeconomics Exam is each a little over two hours long. Each exam 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, you will be advised to read each of the questions, sketch graphs, make notes, and plan your answers. You then have 50 minutes to write your answers. The multiple-choice section accounts for two-thirds of your exam grade and the free-response section for the remaining one-third.
AP Exam Breakdown
Below is an outline of the major content areas covered by the AP Macroeconomics Exam. The percentages indicated reflect the approximate percentage devoted to each content area in the multiple-choice section of the exam. The outline is a guide and is not intended as an exhaustive list of topics.
Percentage Goals of Exam
Content Area (multiple-choice section)
I. Basic Economic Concepts ...... ………………………………… (8–12%)
A. Scarcity, choice, and opportunity costs
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
II. Measurement of Economic Performance ……..……………...... (12–16%)
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. Costs of inflation
C. Unemployment
1. Definition and measurement
2. Types of unemployment
3. Natural rate of unemployment
III. National Income and Price Determination ……….…………...... (10–15%)
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
C. Macroeconomic equilibrium
1. Real output and price level
2. Short and long run
3. Actual versus full-employment output
4. Economic fluctuations
IV. Financial Sector ……………………………..…………………………...(15–20%)
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 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
V. Inflation, Unemployment, and Stabilization Policies …………………….(20–30%)
A. Fiscal and monetary policies
1. Demand-side effects
2. Supply-side effects
3. Policy mix
4. Government deficits and debt
B. Inflation and unemployment
1. Types of inflation
a. Demand-pull inflation
b. Cost-push inflation
2. The Phillips curve: short run versus long run
3. Role of expectations
VI. Economic Growth and Productivity ……….…………………………….(5–10%)
A. Investment in human capital
B. Investment in physical capital
C. Research and development, and technological progress
D. Growth policy
VII. Open Economy: International Trade and Finance ……………………...(10–15%)
A. Balance of payments accounts
1. Balance of trade
2. Current account
3. Capital account
B. Foreign exchange market
1. Demand for and supply of foreign exchange
2. Exchange rate determination
3. Currency appreciation and depreciation
C. Net exports and capital flows
D. Links to financial and goods markets
Course
(Areas of Study are based on a ninety minute block schedule.)
Macroeconomics – 18 Week Course
1. Basic Economic Concepts – Chapter 1 – 2 (2 weeks)
a. Scarcity
b. Opportunity Cost
c. Production Possibilities Curve
d. Analysis Graphs
e. Absolute and Comparative Advantage
f. Circular Flow of Economic Activity
Morton/Goodman: Unit One Lesson 1-5
2008 Macroeconomics AP Question 3
Quizzes & Test (Vocabulary, MC & FR Format)
2. Supply and Demand – Chapters 3-5 (2 weeks)
a. Laws of Demand and Supply
b. Law of Diminishing Marginal Utility
c. Determinants of Demand and Supply
d. Elasticity of Demand and Supply
e. Consumer Surplus and Producer Surplus
f. Price Ceilings and Price Floors
g. Analysis of current events with supply and demand graphs
Morton/Goodman: Unit 2, Lesson 1-6
2003 Macroeconomics AP Question 3
Quizzes & Test (Vocabulary, MC & FR Format)
3. Measuring Economic Performances – Chapters 6-8; 15-16 (2 weeks)
a. Economic Indictors
i. GDP v. Real GDP
ii. Consumer Price Index
iii. Unemployment Rates
b. Inflation
c. Types of Unemployment
d. Recession
e. Business Cycle
f. Relation between unemployment and inflation (Short run and long run Phillips)
Morton/Goodman: Unit 2, Lessons 3-5
Unit 5, Lesson 3
AP Macroeconomics Essay: 2006 Question 3
2002 Question 2
Quizzes & Test (Vocabulary, MC & FR Format)
4. Aggregate Supply and Demand – Chapters 10 – 11 ( 3 weeks)
a. Components of Aggregate Demand
b. Determinants of Aggregate Demand
c. Three ranges of Aggregate Supply Curve
d. Determinants of Aggregate Supply
e. Graphical analysis of shifts on price level, output and employment
f. Recessionary Gap and Inflationary Gap
g. Supply Shocks
h. Shifting Long Run Aggregate Supply – relation to Production Possibility curve
Morton/Goodman Unit 3, Lesson 3-7
AP Macroeconomics Essay 2005 Questions 1 & 2
Quizzes & Test: (Vocabulary, MC & FR Format)
5. Fiscal Policy - Chapters 12 (1 week)
a. Marginal Propensity to Consume and Save
b. Spending multiplier
c. Impact of Government spending on Aggregate Demand
d. Impact of Taxes on Aggregate Demand and Supply
e. Automatic stabilizers
Morton/Goodman Unit 3, Lesson 8
AP Macroeconomics Essay 2005 Questions 3
Quiz & Tests (Vocabulary, MC & FR Format)
6. Financial Sector – Chapters 9, 13-14 (2 weeks)
Power Point Project Due
a. Define money and its functions
b. Loanable funds v. money supply
c. Federal Reserve System
d. Tools of the federal Reserve System to control money supply
i. Discount Rate
ii. Federal Funds Rate
iii. Open Market Operations
iv. Reserve Requirements
e. Real v. Nominal interest rates
Morton/Goodman: Unit 4, Lessons 1, 4-6
Unit 5, Lessons 1, 3
AP Macroeconomics Essay: 2006 Form B Question 2
2006 Question 2
Quizzes & Test: (Vocabulary, MC & FR Format)
7. International Trade & Finance – Chapters 17-19 (2 weeks)
a. Keynesian, Monetarist, Classical and Supply-side Theory
b. Using Fiscal and Monetary Policy to offset inflation or recession
c. Calculating Gains from trade using Comparative Advantage
d. Barriers to trade
i. Tariffs
ii. Quotas
e. Balance of Payments, Capital and Current accounts
f. Floating Exchange Rates and supply and demand analysis
Morton/Goodman: Unit 4, Lesson 1-4
Unit 6
AP Macroeconomics Essay 2006 Form B Question 3
Quizzes & Test: (Vocabulary, MC & FR Format)
8. Personal Finance (1 week)
a. Budgets
b. Cash Management
AP Macroeconomics Exam
Tests/Quizzes:
The purpose of the tests and quizzes is to demonstrate what you have retained regarding the subject matter. Quizzes will be given periodically and sometimes without warning. Please, remember to be above reproach while taking both quizzes and tests. If you cheat, or attempt to cheat, you will automatically receive a zero and be referred to the administrator.
The responsibility for completing missed tests/quizzes rests solely with the student, if you are absent (excused) on a test/quiz day, you will be responsible to make up the test/quiz by the end of the next day. If the absence was unexcused it is your responsibility to make up the test/quiz the next day and you will be subject to an automatic 20% reduction on the test/quiz. If you fail to make up your test on the following day you will receive an automatic zero.
Notebook
It is highly recommended that all students keep a notebook dedicated to AP Macroeconomics only. This notebook should include tests, essays, lecture notes, handouts, homework, etc. This notebook can be a valuable resource in studying for the AP exam in early May. Student notebooks will be reviewed and graded throughout various times during the semester.
Homework:
Expect homework each class session. The purpose of homework is to practice what has been taught in class and to enhance your understanding. Homework assignments will greatly increase your ability to successfully complete future quizzes and/or tests, so please be diligent in completing the assignments.
Current Events: (Due: Every Friday you have Macroeconomics)
As part of the process of understanding how the news and events around the world are impacted by economics, you will be required to turn in a Current Events Analysis every other week. This is designed for you to specifically focus on the pertinent (important) events in a variety of newsworthy areas. The following are the details of the assignment:
§ A total of two (2) articles will be turned in every other Friday. They will be broken down as follows:
1. One Article - Based on the actions/activities of the government in regards to economic issues (6 pts)
2. One Article - Based on the actions/activities of any economic activity in the US or abroad. (6 pts)
§ For each article you will provide a briefly typed Current Event Analysis (5 pts. per analysis)
§ Articles will be affixed to the back of the 8.5” x 11” paper for easy handling (1 pt. per article)
§ No double dipping is allowed.
§ Each article will be dated within two weeks of the due date. This means you may not use archived articles from some publications.
Current Events Analysis Assignments will be due immediately upon arrival to class – place them in the homework bin as you enter the classroom.
No late assignments will be accepted, unless otherwise approved by Mrs. Ungeheier prior to the due date. (See Student Handbook regarding absence policy.)
Semester Project: (Due: Monday, April 4th)
Power Point presentations must be on any topic relating to an economic issue discussed within the text of this course. Alternatively, if you have a desire to do a presentation on an economic topic that was not mentioned during the course, please bring your request to Mrs. Ungeheier for approval.
Presentation should consist of approximately 25-30 slides (this includes a title slide and bibliography slide). Please cite throughout the presentation when using someone else’s ideas or words. Exact quotes need to be in quotation marks! You should cited at least five references in your bibliography using the MLA FORMAT. ALL PROJECTS MUST BE TURNED IN VIA E-MAIL, CD or 3½ DISK PRIOR TO OR ON THE ABOVE DUE DATE. (DO NOT USE ‘WIKIPEDIA’ – it is not a reliable source.)
(E-mail: )
The project will be graded equally among the following: (60 pts)
· Title Page MLA Format (2 pts)
· Clarity of presentation of thoughts and concepts (10 pts)
· Logic of arguments for particular positions (10 pts)
· Grammar, spelling and syntax indicative of grade-level writing skills (10 pts)
· Proper MLA format citing within the text (20 pts)
· Proper MLA format of citing each reference (5 pts)
· “Works Cited” or “Bibliography” (3 pts)