Advanced Placement Macroeconomics Course Syllabus
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1 Instructor: Rebekah Diana Advanced Placement Macroeconomics Course Syllabus Course Website: Bookmark this page! Textbook: David C. Colander, Economics, Irwin McGraw-Hill, Boston, 1998, 3 rd edition, Chapters 1 20, pages Additional Readings: assigned throughout the course. Required Materials: Textbook and additional readings for homework, course notebook Course Content (Chapters 1 20) 1. Economics and Economic Reasoning: Marginal costs and marginal benefits, opportunity costs, the functions of an economics system (what, how, and for whom to produce), and the invisible hand. 2. The Economic Organization of Society: Capitalism, socialism, Soviet-style socialism, the production possibility frontier, and comparative advantage. 3. Supply and Demand: The laws of supply and demand, relative prices, shifts in supply and demand versus movement along a supply or demand curve, the dynamic laws of supply and demand, shortages, surpluses and equilibrium, and the algebraic representation of demand, supply and equilibrium. 4. Using Supply and Demand: Price ceilings and floors, shifts in supply and demand curves, exchange rates and supply and demand, rent controls, and the effects of taxes, tariffs, and quotas on supply and demand, partial equilibrium analysis, the fallacy of composition, and the algebraic representations of interferences with supply and demand.. 5. U.S. Economic Institutions: Forms of business (e.g., proprietorships, partnerships, corporations), stocks, households, and the role of government in a capitalist society. 6. An Introduction to the World Economy: International trade, the U.S. trade deficit, debtor and creditor nations, the economic status of the nations of the world, the World Trade Organization, the World Bank, the International Monetary Fund, the Group of Seven, the European Union, the North America Free Trade Agreement, and the economy of Japan. 7. Economic Growth, Business Cycles, Unemployment, and Inflation: Gross Domestic Product, sources of economic growth, phases of the business cycle, types of unemployment, the target rate of unemployment, potential output, Okun s rule of thumb, the GDP deflator, types of inflation, and real and nominal output. 8. National Income Accounting: Gross Domestic Product versus Gross National Product, the value added approach to GDP, aggregate demand the expenditure approach to GDP, the circular flow, real and nominal GDP, net domestic product, national income, personal income, disposable personal income, total factor productivity, and gross output (G.O.). 1
2 9. Money, Banking and the Financial Sector: Functions of money, measures of the money supply, the money or deposit multiplier and the creation of money by the banking system, the real world money multiplier, the present value of money, types of financial institutions, stocks, bonds, certificates of deposit, commercial paper, mortgages, and reading the financial page. 10. The Modern Macroeconomic Debate: Classical economics, Say s law, equation of exchange, quantity theory of money, Keynesian economics, the aggregate equilibrium demand curve, and the aggregate supply path, the wealth effect (Pigou effect), the interest rate effect (Keynes effect), and the international effect. 11. The Aggregate Production/Aggregate Expenditures Model: The marginal propensity to consume and save, the Keynesian equation, the multiplier, and the Classical response to the Keynesian model. 12. Fiscal Policy and Demand Management: Structural and passive deficits, crowding out, and the problems of using fiscal policy to manage demand, and the Great Recession of Monetary Policy: The Federal Reserve Bank, the monetary tools of the Fed, real and nominal interest rates, the Taylor Rule, quantitative easing, Janet Yellen, the Taylor Rule, measuring wealth (assets) and income, and Classical and Keynesian views on monetary policy. 14. Inflation and Its Relationship to Unemployment and Economic Growth: Short-run and longrun Phillips curves, stagflation, Keynesian and Classical theories on inflation, and Keynesian and Classical policies to stop inflation. 15. International Dimensions of Monetary and Fiscal Policy: Fixed and flexible exchange rates, the effects of inflation, interest rates, income, and trade on exchange rates, fiscal devaluation (Gita Gopinath), and the effects of fiscal policy and monetary policy on trade and exchange rates. 16. Open Economy Macro: Exchange Rates and Trade Policy: The balance of payments, purchasing power parity, the advantages and disadvantages of fixed and flexible exchange rates, international trade restrictions, the J curve, the gold standard, and the Bretton Woods system. 17. The Art of Traditional Macro Policy: The advantages and disadvantages of expansionary and contractionary monetary and fiscal policy, what Classicals and Keynesians agree on, and the modern or new Classicals (the rational expectations approach). 18. Supply-side Economics: Classical and Keynesian structural supply side policies. 19. Debts and Deficits: Internal and external debt, debt service, how inflation wipes out debt, measuring debt, public debt, the increased size and changing nature of the U.S. national debt and deficits, U.S. as a debtor nation and the debate over the national debt. 20. Developing and Transitional Economies: The dual nature of the economy of developing nations, monetary policy, inflation and taxes in developing nations, and non-convertible currency. 2
3 Advanced Placement Exam Information: mid-may 2015 The AP exam is graded on a five point scale. Generally, most public universities award credit to students who earn a 3 or higher, while many private colleges require a score of 4 or higher. However, since each school is free to set its own policy, students are advised to check the policies of institutions they are interested in attending. Exam Content: Subject Percentage of Exam Basic economic concepts 8-12% Measurement of economic performance 12-16% National income and price determination 10-15% Financial sector 15-20% Inflation, unemployment and stabilization policies 20-30% Economic growth and productivity 5-10% Open economy: international trade and finance 10-15% Exam Format: The AP exam consists of two sections. Section I: Multiple Choice (70 minutes; 66% of total score) Section II: Free Response Questions (FRQs) (1 hour; 33% of total score) Incorrect MC answers do not merit point deductions. The free-response questions in Section II of the exam generally ask students to analyze a given economic situation and present and evaluate general macroeconomic principles. Students may be required to interpret graphs that are provided as part of the questions or to draw their own graphs as part of their answers. The long answer FRQ is worth 1-15 points and two short answer FRQs are worth 3-7 points. Course Format 1. Approximately every three days, students will be assigned to read one of the 20 chapters in Colander s Economics and additional readings for homework. The textbook reading must be complete prior to the beginning of the unit (e.g., read chapter 2 before I lecture on chapter 2). Every now and then, I will assign additional reading that will be completed during the unit. To maximize your understanding, I strongly recommend taking Cornell notes to organize your thoughts, jot down questions, etc. (this will help as you prepare for the AP exam). This will be followed by 1 to 1½ class periods of lecture, class activity, discussion, and questions over the materials covered in the textbook and additional readings. Following this, about 1 to 1½ class periods will be used to work in small groups on problems that require students to use, analyze, and evaluate the information and ideas that have been presented. Many of these problems involve the creation and the use of graphs and tables, and require mathematical skills. 2. A take-home exam will be given after the completion of each chapter in the textbook and other related course material. The exam will be multiple-choice questions and will be similar to the questions that make up the largest portion of the AP exam. Many of the questions will require the interpretation of graphs. As well, there will be several opportunities to practice FRQs, the other portion of the AP exam. 3
4 3. Students are required to take notes on class discussions, lectures, and video materials. 4. It is very important that students read each chapter before it is discussed in class. At the beginning of class, reading tests may be given to ensure that student readings in the text are completed on a timely basis. This is part of your Citizenship/Participation grade. 5. When completing a take-home exam, it is recommended that students study for the exam first. Then they should complete the exam without using notes or text. Finally, students should use notes and the textbook to answer questions that they had difficulty with or to verify answers that they were uncertain about. Students should not write on the test question sheets. Their answers must be numbered and put vertically on a piece of notebook paper. Exams must be turned in on-time. Students will be responsible for returning each test question sheet when tests are due (2 days after given out). 6. I am available for tutorial 30 minutes before class (7:15am) and 1 hour after school ends to assist you. I encourage you to take advantage of this time to have any questions answered and expand on your learning. You can also stay with me during Bear Time. 7. Practice exams will be given beginning around completion of chapter 14 and continuing until prior to the AP exam in May. I will be available for review session/s just before the AP economics exam in May (more details on this later). 8. The class time available after the AP exam has been completed will be used to study a variety of topics yet to be determined. 9. Because of the fast pace of this class, it is important that students keep up with the class work, even if they are absent. Expectations (you can have of me and I will have of you) I expect students to be responsible for coming to class on-time and completing work. >>Students will submit their homework at the beginning of class. I will check-in with students for understanding and progress on work completion. >>Students will check with classmates and come to me if they have questions. Students will communicate if they cannot submit an item to me on-time. I will rely on student participation to direct the flow of the lesson. >>Students will actively engage in the lesson, sharing input with peers or to the class as a whole. This participation will be facilitated by classmates and me. I will have students take notes and write entries in a class notebook. >>Students will maintain a class notebook in which they take notes and write warm-ups and periodic entries. I will accommodate students individual learning needs (IEPs, 504 Plans). >>Students will communicate if these accommodations are not meeting their needs so that I can adjust my methods accordingly. Students will use these accommodations to better their learning; their efforts will be demonstrated by classroom behavior, participation, and work completion. 4
5 I will positively reinforce students' efforts and achievements through notes, discussion, and one-one conversation. >> Students will adjust their efforts and strive for continued achievement based on my feedback. Use of cell phones for any purpose other than class work is not allowed in the classroom. Course Grading AP Economics is a college-level class that each student has elected to take. By choosing to take this course, both the student and the teacher take responsibility for student mastery of learning. My general belief is that if a task is worth giving, then it is worth doing; and if it is worth doing, then it is worth doing well. Although this course will be challenging, I will do my best to present you with information that is accessible and be available for additional help before and after school. I ask that students simply do their best in this class by attending, taking notes, participating, completing assignments on-time, and studying. This is great preparation for college! Course grades will be determined according to the following scale: A 100% - 90% B 89.9% - 80% C 79.9% - 70% D 69.9%-60% F 59.9%-0% Categories: The approximate weighting for the various course requirements is as follows: 25% Citizenship/Participation - Class Activities, Homework/Reading tests 35% Assignments In-class group assignments on chapter problems 40% Exams Unit exams (multiple choice) Chapter Exams: There will be regular exams during the semester at the conclusion of each chapter, though periodic reading tests should be expected. Exams will include multiple choice questions. There are opportunities to complete test corrections; these will primarily occur during Bear Time. I will notify you when chapter test corrections are due. There will not be a semester final. After completing 20 chapters in the textbook, remaining course time will be dedicated to course review and preparation for the AP exam. Late Work and Absences: Assignments are due at the beginning of the class period. If an assignment is not turned in at that time, it is late. I accept late work for excused absences only. Excused absences and late work: If your absence is excused you will have the number of days that you missed class to make up any missing assignments or exams. (e.g., three consecutive days absence = three days to submit work assigned/due during that absence)*. Extra Work: Similar to the concept of extra credit. I may occasionally offer opportunities for extra work to increase your grade. By changing the word credit to work I require that in order for you to get the extra points, you must do more just complete the work, you must do it well. It is your responsibility to check the course website and/or ask what you missed while you were absent and to secure any necessary materials. If you are scheduling a long absence please talk with me ahead of time 5
6 so that we can make plans accordingly. If you know ahead of time that you will be absent (e.g., college visit) you may obtain homework/assignment materials from me beforehand. The OSD s and Olympia High School's respective policies regarding the consequences of the number of absences and tardies will be followed. While you will have the opportunity to make up work missed during an absence, it is in your best interest to not fall behind. Cheating: Students are encouraged to help each other, but cheating will not be tolerated. This includes plagiarism: Plagiarism is copying another s work and submitting it as if it were the original work of the student. Whether the source is copyrighted or not, printed or recorded, or a paper used by another student, if it is used without recognizing the source, plagiarism exists. Academic honesty and respect of copyright laws are also required in use of computer information downloaded from another source. If you have any questions, check with your teacher prior to completion of the assignment. OHS Academic Honesty Code Please see OHS s Academic Honesty Code in full, including enforced consequences, on the school website: codes/academic_honest_code. Disclaimer: The instructor reserves the sole and complete right to modify this syllabus at any time and in any way she sees fit. Students and Parents: Thank you for taking the time to read the syllabus. Please fill out the following information, sign at the bottom to indicate that you received and read the information. I have read and understand the goals and requirements for the course, as they are written above, and agree to meet them. Student Name (print): Student Signature: Parent / Guardian Name(s) (print): Parent Signature: Address (please print clearly) Student Parent 6
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