AP Macroeconomics

AP Macroeconomics will be offered during 3rd period on A days in the Spring '19 Semester.

Students will need to procure a copy of the book:
New Ideas from Dead Economists, by Todd Buckholz. 
New copies are available on Ebay for only $5.99.

Also, here is a link to a free .PDF version of the text:

Students will need to read Ch.1, Ch.2, Ch.9 and Ch.10.
We will have a test over these four chapters at the end of the first week of the Quarter.

Course Name: AP Macroeconomics
One Semester Course: 18 weeks, A-B Block 4 period day, 95 minutes per class

45 class meetings

Bibliography of Texts:

Main Text:
Boyes, William and Michael Melvin
Houghton Mifflin Company: 7th Edition, 2008 ISBN: 0-618-76125-X

Activities Manual:
Morton, John S. and Rae Jean B. Goodman
Advanced Placement Economics: Macroeconomics National Council on Economic Education: 3rd Edition, 2003 ISBN: 1-56183-567-6

Student Reader (Students must purchase): Buchholz, Todd G.

New Ideas from Dead Economists: An Introduction to Modern Economic Thought,
Plume, Penguin Group: 1990
New York, New York

ISBN: 0-452-26533-9

Course Description

This is a college-level course, and it is an introduction to macroeconomics. This subdivision of economics deals with the economy as a whole: aggregate national income and output, government spending and taxation, money and banking, monetary policy and international trade.

Course Plan (Sequence of the Topics Covered):

Unit 1 Introductory Materials

Topics Covered:
Scarcity, Opportunity Cost, Factors of Production, Supply and Demand
Laws, Curves and Determinants, Equilibrium Price and Quantity, Ceilings, Floors, Basic Circular Flow Models, Production Possibility Frontiers, Basics of Business Cycles, Inflation, Macro versus Micro,
Ceteris Paribus, "Full Employment", Efficiency, Substitute Goods, Complementary Goods

College Board Course Outline Correlation: "Basic Economic Concepts: A, B, D, E" Text Chapters: 1, 2, 3
Test on Chapters 1,2, and 3
Time Committed to the Unit: 4 days

Unit 2
National Income Accounting

Topics Covered:
GDP, GNP, NNP, NI, PI, DI, Consumption and Savings, Inflation, Nominal versus Real, Intermediate Goods, Expenditure Approach to GDP, Income Approach, Gross versus Net, Formulas from GDP to DI, CPI, Per Capita

College Board Course Outline Correlation: "Measurement of Economic Performance: II A"

Text Chapter: 6, 17
Test on Chapter 6 and 17
Time Committed to the Unit: 4 days

Unit 3
Growth and Business Cycles

Topics Covered:
Rule of 70, Productivity, Components and Patterns of the Business Cycles, Types of Unemployment, Unemployment Rates, Okun's Law, GDP Gap, Rates of Inflation, Demand-Pull, Cost Push, Nominal Income versus Real, Unanticipated Inflation, Aggregate AS/AD Model introduction

College Board Course Outline Correlation: "Measurement of Economic Performance: II B, C"

Text Chapter: 8
Test on Chapter 8
Time Committed to the Unit: 4 days

Unit 4 Aggregate Models

Topics Covered:
Consumption and Savings Schedules, APC, APS, MPC, MPS, Nominal Interest Rates, Real Interest Rates, Investment Demand Curves, Aggregate Demand and Curves, Aggregate Supply and Curves, Determinants of AD and AS, Productivity, Multipliers

College Board Course Outline Correlation: "National Income and Price Determination: A, B, C"

Text Chapter: 9, 10, 11
Test on Chapters 9, 10, and 11 Time Committed to the Unit: 7 days

Unit 5
Fiscal and Monetary Policy Options

Topics Covered:
Employment Act of 1946, Fiscal Policy Options, Fed Policy Options,

Monetarist Analysis and Reactions, Supply Side-Neo Classical Options, Crowding Out Effects, Value of Money, Money Creation, M1, M2, M3, Money Supply,
Fed Powers, FOMC, Countercyclical goals, Loanable Funds Market, Private Bonds Markets, Fed Fund Rates, Reserves, Excess Reserves, Reserve Ratio, Liquidity, Easy Money, Tight Money, Short Run AS, Long Run AS

College Board Course Outline Correlation: "Financial Sector" and "Inflation, Unemployment, Stabilization Policies"

Text Chapter: 12 through 14
Tests on Chapters 12 through 14 Time Committed to the Unit: 11 days

Unit 6 Modern Perspectives

Topics Covered:
Phillips Curve SR, Phillips Curve LR, Stagflation, Disinflation, Supply Side/Neo-

Classical, Labor Productivity, MV = PQ, Basics of Rational Expectations School

College Board Course Outline Correlation: "Financial Sector" Text Chapters: 15 and 16
Test on Chapters 15 and 16
Time Committed to the Unit: 4 days

Unit 7 International Trade

Topics Covered:
Export and Import Trends, Trade Surpluses and Deficits, Tariffs Plus and

Minus, Most Favored Nations, WTO Growth, Free Trade Basics, Non-tariff Barriers, Multinationals, Currency Values and Exchanges, Dollarization, Balance of Payments Systems, Remittances, Domestic Policy connections to Trade, Comparative Advantages, Currency Exchange Graphs, Current Accounts, Capital Accounts

College Board Course Outline Correlation: "Economic Growth and Productivity", "Open Economy: International Trade and Finance"

Text Chapters: 18, 19, 35, 36, and 37
Test on all chapters relevant to these specific international topics Time Committed to the Unit: 7 days

Time Committed to review: 4 days


Additional Assignments

Readings and Chapter Quizzes from New Ideas from Dead Economists: These assignments occur throughout the semester and cover
all the basic historic philosophers of economics.

Macroeconomic Graphing

Students will create a master chart of graphs and be able to create and give an analysis for:

Production Possibility Frontiers
Business Cycles and the Secular Trend
Consumption and Savings Functions and Links
Investment Demand Curve
Aggregate Supply Segments and Biases (Keynes versus Say's Law) Aggregate Demand and Aggregate Supply Model
Money Supply Markets
Loanable Funds/Private Savings Market
Private, Domestic Bond Markets
Phillips Curves
Laffer Curve
Dollar Markets/Foreign Currency Markets

Tests and Quizzes

Chapter tests are taken from the text publisher's test bank. All multiple choice questions contain 5 answer choices, phrased in the same style as the College Board AP test.

8 Timed-Writing Quizzes will be given during the semester. Students will have 12 minutes to complete the quiz. These questions will be taken from previous free-response questions.

10 Reading Quizzes will be given over the assigned textbook material. These will be given at random and will include 10 multiple choice questions.

Morton and Goodman Workbook (3rd Edition)

The following items will be used for graphing and economic calculations practice. The goal is to cover the following activities from this AP source:

Unit 1, Activity 1-1

Production Possibilities Curves

Unit 1, Activity 2-4

Changes in Demand

Unit 1, Activity 3-6

Changes in Supply

Unit 1, Activity 4-7

Changes in EP, EQ

Second Edition, Activity 6

Simple Circular Flow

Second Edition, Activity 10, Part B

GDP, GNP to DI and Savings

Unit 2, Activity 3-13

Price Indexes

Unit 2, Activity 3-15

Inflation: Helped or Hurt?

Unit 2, Activity 4-16

Types of Unemployment

Second Edition, Activities 24, 25

Marginal Propensity to Consume, Save

Second Edition, Activity 16, Part B

Changes in AD

Second Edition, Activity 17, Part B

Changes in AS

Unit 3, Activity 5-25

Changes in AD and AS

Second Edition, Activity 39

Federal Reserve Monetary Policy

Unit 4, Activity 3-37

Demand Deposits

Unit 4, Activity 3-38

Changes in Fed Policy Options

Unit 4, Activity 6-41

Nominal and Real Interest Rates

Unit 6, Activity 1-49

Comparative Advantage

Unit 6, Activity 1-50

Comparative Advantage and Trade

Unit 6, Activity 3-52

Current Accounts

Unit 6, Activity 3-53

Capital Accounts

Unit 6, Activity 3-54

Currency Exchange Rates

Outline and Summary of the Course Scope and Sequence





Introductory Macro Topics and Terms

Week 1-2


National Income Accounting

Week 2-3


Growth and Business Cycles

Week 4-5


Aggregate Models

Weeks 6-8


Fiscal and Monetary Policy Options

Weeks 9-12


Banking and Money Multipliers

Week 13-14


International Trade

Weeks 15-16


Review for Exam

Week 17-18

The AP Macroeconomics Test will be administered on May 15th at 12 PM.