Advanced Placement Macroeconomics

Lucas J Saucedo [email protected] Advanced Placement Macroeconomics Manvel High School Alvin ISD

Dear Parent or Guardian, It is my pleasure to have your son or daughter in my Advanced Placement Macroeconomics class. Enclosed you will find a copy of the class syllabus. Please read it and let me know if you have any questions. In support of the syllabus, I have a personal webpage on the Manvel HS website that will be extremely important for this class. At the site you will find an AP Macroeconomics calendar. The calendar contains links to all the assignments and activities for homework as well as things we will do in class. Please take a moment to visit the site and see what is there. It will help you to know EXACTLY what work your child should be doing on a daily basis. Please sign the bottom portion of this notice and ask your child to return it to me. Feel free to contact me by your preferred method. Thank you for your time and attention.

Lucas J Saucedo ------

I acknowledge receipt of the class syllabus for Advanced Placement Macroeconomics.

Student: ______

Parent:______ADVANCED PLACEMENT MACROECONOMICS

Year 2013-2014 Lucas J Saucedo, Teacher [email protected]

Welcome to Advanced Placement Macroeconomics

Purpose: The Advanced Placement Macroeconomics Course is designed to replicate the introductory Macroeconomics course taught in a university setting for high ability students willing to engage in a rigorous curriculum. Those students taking the AP Macro Course are expected to take the 2013 AP Examination in Macroeconomics. This examination is approximately two hours long, and consists of a 70-minute multiple- choice section and a 50-minute free-response section. For scoring purposes, the multiple- choice section of the test accounts for two-thirds of the student's examination grade and the free-response section for the remaining one-third.

In preparation for this exam, the course will be divided into seven units of study:

(1) Basic Economic Concepts; (2) Measurement of Economic Performance; (3) National Income and Price Determination; (4) Money, Banking and Monetary Policy, (5) Inflation, Unemployment, and Stabilization Policy, (6) Economic Growth and Productivity, (7) Open Economy: International Trade and Finance. Grades are based on Unit Exams, Free Response Questions (FRQ’s), homework, quizzes, supplemental book reviews, article reviews, key terms, cumulative exam, and participation.

Every week a quiz will be given based on text reading assignments, or current events. EVERY video shown in class will be the subject of a quiz covering the basic themes and topics of the film, including episodes of Economics U$A. Key terms from each unit of study are to be written on 3 by 5 index cards which include definitions, economic importance and appropriate graph. Students taking AP Macro will be required to take a two-part AP Macro Exam (modeled from previously published AP exams).

Pre-Requisites: Read at grade level Use graphs, tables, and math to analyze data and concepts Take notes Organize time and possess self-discipline Supplies: 3 Ring notebook, pencil, pen, access to internet, simple calculator Text: ECONOMICS: Principles, Problems, and Policies 15th Edition, McConnell and Brue, McGraw/Hill

Grading: Tests – 60% Homework – 10% Daily Assignments, FRQ’s – 30% Students and parents must understand up front that this is a college level class. As such, students will be expected to spend a great deal more time on this class than they would in an ordinary class. The very nature of the economics makes it almost like a foreign language. The student will encounter many topics/words that they have never heard of before. It is very important for the student to work on economics daily or they will ultimately get behind and may not be able to catch up.

*******ALL HOMEWORK MUST BE TURNED IN THE DAY IT IS DUE******

All homework will be posted on my school webpage!! It is your responsibility to come to me to get any assigned work for any day you may have missed class, for whatever the reason. You must come to me before the next class period to get the missed work. This INCLUDES college visits, field trips, etc.

Each student must have 2 inch (at least) 3-ring binder. They must maintain this notebook with all the handouts I give them.

TUTORING: TUE/THURS 6:50 -7:15 am or by appointment.

Semester Schedule:

Unit One: Basic Economic Concepts, (~1.5 weeks) (AP Exam 8-12%)

 Read Chapters 1-3, McConnell Brue.  Chapters’ quizzes  Economics U$A Video Series: o #1, “Scarce Resources: What is Economics All About?” o #2, “Markets and Prices: Does the Free Market Respond to Peoples’ Needs?”  Video Clip illustrating opportunity cost o “The Family Man”

 New Ideas From Dead Economist: o Chapter 1: The Plight of the Economist, o Chapter 2: The Second Coming of Adam Smith  Simulation, illustrating scarcity, opportunity cost, market systems: o John Morton’s “Campus Parking”  Index Cards on Unit Key Terms  Supply/Demand note sheets provided by instructor  Graphing: o Production Possibility Curve and Frontier o Demand and Supply showing Equilibrium o Demand and Supply showing shifts  Advanced Placement Economics Macroeconomics: Student Activities (NCEE): Unit One o Lesson 1, Activity 1-2, Scarcity, Production Possibilities Curve o Lesson 2, Activity 3-4, Shifts along the Demand Curve o Lesson 3, Activity 5-6, Shifts along the Supply Curve o Lesson 4, Activity 7, Equilibrium Price and Quantity Unit One Exam

Unit Two: Measurement of Economic Performance, (~2 weeks) (AP Exam 12- 16 %)  Read Chapters’ 7 and 8 McConnell Brue  Chapter 7 and 8 quizzes  Economics U$A Video Series o #3, “Economic Growth: What is Gross Domestic Product?”  Economics U$A Video Series o #4, “Booms and Busts: What Causes the Business Cycle?”  Video clip: o Comparing the Economies in Hong Kong, India, and U.S. Stossel in the Classroom Video, “Is America # One?  Simulation: o Economics in Action Lesson 10, “Earning a Living In Econoland” simulation of Circular Flow of Money.  Index Cards on Unit Key Terms (see attachment for terms and due dates)  New Ideas From Dead Economist, Chapter 8;Old and New Institutionalists  Graphing: o Circular Flow of Economic Activity o Phases of the Business Cycle  Advanced Placement Economics Macroeconomics: Student Activities (NCEE): o Unit Two Key Ideas and Activity 12, All About GDP o Lesson 1, Activity 10, Understanding the Circular Flow of Macroeconomy o Lesson 3, Activity 14, Who is hurt most by inflation simulation o Lesson 4, Activity 16, Types of Unemployment o Lesson 5, Activity17, The Business Cycle Unit Two Exam/Practice FRQ

Unit Three: National Income and Price Determination, (~2 Weeks) (AP Exam 10- 15%)  Read Chapters 9, 11, McConnell Brue  Chapter quizzes  Economics U$A video series: o # 5, “John Maynard Keynes: What Did We Learn From the Great Depression?” o # 6, “Fiscal Policy: Can We Control the Economy? o #7, “Inflation: How Did the Spiral Begin?” o #11, “Productivity: Can We Get More for Less?”  Index Cards on Unit Key Terms  New Ideas From Dead Economist, o Chapter 9, Keynes: Bon Vivant as Savior  Graphing: o Investment Demand Curve o Aggregate Demand and Short Run Aggregate Supply o Aggregate Demand and Long Run Aggregate Supply  Advanced Placement Economics Macroeconomics: Student Activities (NCEE): o Unit 3, Lesson 1, Activity 19-20, Keynesian Equilibrium o Lesson 1, Activity 21, Magic of the Multiplier o Lesson 3, Activity 23, Introduction to Aggregate Demand o Lesson 4, Activity 24, Introduction to Short-Run Aggregate Supply o Lesson 5, Activity 25-26, Short-Run Equilibrium Price Level and Output o Lesson 6, Activity 27, Manipulating the AD and AS Model Unit Three Exam/FRQ

Unit Four: Money, Banking, and Monetary Policy, (~ 2 Weeks) (AP Exam 15-20%)  Read Chapter 13, 14, 15 from McConnell Brue  Chapter quizzes  Economic U$A Video Series: o #8, “The Banking System: Why Must It Be Protected?” o #9, “ The Federal Reserve: Does Money Matter/” o #13, “Monetary Policy: How Well Does it Work/” o #14, “Stabilization Policy: Are We Still in Control?”  Index Cards on Unit Key Terms)  Graphing: Loanable Funds Market o Money Markets  Advanced Placement Economics Macroeconomics: Student Activities (NCEE): o Unit 4, Lesson 4, Activity 34-35: What is Money? o Activity 37, Financial Intermediaries: Multiple Expansion of Checkable Deposits o Activity 38, The Federal Reserve: The Mechanics of Monetary Policy o Unit 4, Lesson 6, Activity 41: Real Interest Rates and Nominal Interest Rates  Analyzing the economic policies of Milton Freidman and Monetarism o Students will write a two page analysis after viewing “Mr. Mom” video clips. Unit Four Exam/FRQ

Unit Five: Inflation, Unemployment and Stabilization Policies (~2 Weeks) (AP Exam 20-30%)  Read Chapters 12,18,19, McConnell Brue  Chapter Quizzes  Economics U$A Video Series o #10, Stagflation o #12, Federal Deficits: Can We Live With Them?  Index Cards on Unit Key Terms  Graphing: o Aggregate Demand and Aggregate Supply Model o Phillips Curve  Advanced Placement Economics Macroeconomics: Student Activities (NCEE): o Activity 30-33: Tools of Fiscal Policy o Activity 43-45: Monetary and Fiscal Policy o Activity 28: Macroeconomic Model; Short Run to Long Run o Activity 46: Short-run Phillips Curve

Unit Five Exam/FRQ

Unit Six: Economic Growth and Productivity (.5 week)

 Read Chapters 16 and 17  Chapter Quizzes  Key Terms  Student Activities (NCEE) o #47 Economic Growth and Determinants of Productive Capacity

Unit Seven: Open Economy: International Trade and Finance (~2 Weeks) (AP Exam 10- 15%)  Read Chapter 6, 37, 38, McConnell Brue  Economics U$A Video Series: o #25, “Economic Growth: Can We Keep Up the Pace?” o #27, “International Trade: For Whose Benefit?” o #28, “Exchange Rates: What in the World Is a Dollar Worth?”  Index Cards on Unit Key Terms  New Ideas From Dead Economists, o Chapter 3, Malthus: Profit of Doom and Population Boom, o Chapter 5, The Stormy Mind of John Stuart Mill  Advanced Placement Macroeconomics: Student Activities (NCEE) o Lesson 49, Determining Comparative Advantage o Lesson 52, Balance of Payments o Lesson 53, Exchange Rates o Lesson 54, How Monetary and Fiscal Policies Affect Exchange Rates o Lesson 55, The International Way of Thinking  The Center For Learning, o Lesson 35, Policy effects on International Markets o Lesson 36, International Trade  “Toyota Road U.S.A., Part political, Part Economic, Entirely Welcome”, Time Magazine, October 7, 1996, Article analysis.  Current Event Article, example: “The Great Wal-Mart of China”, Newsweek, October 30, 2006.

Unit Seven Exam/ FRQ

 GROUP POWER POINT PRESENTATIONS (see below) due two weeks prior to the end of the semester will serve as a review of the course. Groups will consist of 3 persons and cover the Economic schools of thought.  (Final Exam will be questions taken from previously published AP Exams and Free Response Questions.

**Group Project: Economic Schools of Thought

There is much disagreement among economists about how the macro-economy operates. This inevitably leads to disagreement regarding how an economy should be managed. Some economists argue that it is the demand for goods and services that affects an economy's performance while others believe that an economy's performance is affected by the supply of goods and services. As a result, demand-side economists subscribe to macroeconomic policies that affect the demand for goods and services while supply-side economists put more faith in those policies that affect the supply of goods and services. Some economists argue that the macro-economy is affected by neither demand nor supply, but rather by the amount of money that is in circulation. All of these aforementioned economists have one thing in common — they believe in some (albeit different) form of government intervention. Another category of economic thinkers believes that the economy is not driven by one (or more) component; therefore, government intervention is either futile or counterproductive.

Objective

The purpose of this project is to research, analyze, and present different economic schools of thought.

Requirements In groups of four to five students, you are required to read chapter ( ) in your text, and research, analyze, and present one of the following economic schools of thought:

• Classical • Keynesian • Monetarist • Supply-side • New Classical (Rational Expectationalist)

Your analysis should be based on the following components:

• Overview of economic school of thought (required) • Indication of degree of government intervention (required) • Role of business and investment • Role of budgets and deficits • Effect of taxes • Perspectives on inflation • Ideas regarding international trade • Requirements for growth • One other economic component of your choice

The first two components are mandatory; however, you may choose a third among the rest. Keep in mind that each member of your group must present one component. The presentations will be 30 minutes long, leaving enough time for questions at the end. The Presentation must include evidence of research.

Evaluation

Your project will be evaluated according to the following objectives: Percent value of each part and subpart

1. Presentation 100% 1.1 Economic school of thought 25% 1.2 Degree of government intervention 10% 1.3 Third component 10% 1.4 Content 20% 1.5 Research 15% 1.6 Organization 15% 1.7 Expression 5%