AP Macroeconomics Course Outline

The following course outline provides for you the major concepts to be covered in this course. Please note that homework for each Chapter is due on the date you take the Chapter Quiz. You must turn in at least three assignments on the day of each quiz. You may choose to do the textbook’s Key Questions and any combination of workbook activities. The Dead Economist chapters noted below will be assessed with the appropriate chapter as indicated in the course outline.

AP Macroeconomics Course Outline	Textbook Chapter	Workbook Activities	Dead Economist
Unit 1: Introduction to Economics I.                    Basic Economic Concepts A.     Scarcity B.     Opportunity Cost C. Factors of Production D.     Production Possibilities E.      Comparative Advantage F. Private Property II.                  The Market System A.     Consumer Sovereignty B.     Profit and Resource Allocation C.     Household (Consumer) Sector D.      Business Sector E.      International Sector F. Government (Public) Sector G.     Circular Flow Model H.     Profits, Normal and Economic III.                 Price Determination A.     Demand B.     Supply C.     Price Determination D. Price Ceilings and Floors	1 & 2 4 & 5 3	1-2 9-10  3-8	1-4 5 6  7
Unit 2: Measure of Economic               Performance I.                    GDP and National Income A.     Expenditure Approach B.     Income Approach C.     Measurement Inaccuracies D.     Real GDP E.      National, Personal, and Disposable Incomes II.                 Unemployment and Business Cycles A.     Phases of Business Cycles B.     Types of Unemployment C.     Measurement of Unemployment III.               Inflation A.     Meaning and Measurement B.     Consumer Price Index C.     Producer Price Index D. Demand Pull/Cost Push Inflation E.     Consequences of Inflation	6 8	11-12 16-18 13,15

AP Macroeconomics Course Outline	Textbook Chapter	Workbook Activities	Dead Economist
Unit 3:  Macroeconomic Theory and                Fiscal Policy I.                    Aggregate Demand and Supply Model A.     Determinants of Aggregate Demand B.     Aggregate Demand Shifts C.     Determinants of Aggregate Supply D.     Macroeconomic Equilibrium E.      Aggregate Supply Shifts II.                 Aggregate Expenditure Model A.     Keynesian Debate B.     Consumption and Saving C.     Investment Demand D.     Equilibrium: Expenditure/Output E.      Equilibrium: Leakages/Injection F.      Multiplier Effect G.     Net Export Effects H.     Government Spending Effects III.               Fiscal Policy A.     Discretionary Fiscal Policy B. Crowding Out C. Budget Process D.     Automatic Stabilizers E.     Problems with Fiscal Policy	9  10 & 11 12	23-25 27-29 20-22 30-31, 33	8 9
Unit 4:  Money, Banking, and Monetary               Policy I.                    Money and Banking A.     Functions of Money B.     Money Supply Measurement C.     Banking System D.     International Banking E.      Money Creation F. Money Multiplier III.               Monetary Policy A.     Federal Reserve System B. Quantity Theory of Money C. Fed Funds Market D. Monetary Policy Tools E. Money Demand G.     Effects of Monetary Policy H.     Effectiveness of Monetary Policy	13 14	34-35, 37 36, 38-42	10

AP Macroeconomics Course Outline	Textbook Chapter	Workbook Activities	Dead Economist
Unit 5: Applications of Monetary and Fiscal Policy I.                    Tradeoffs in Policy Options A.     Phillips Curve (Short and Long Run) B.     Rational Expectations Theory C.     Policy Lags and Timing Issues D.     Sources of Economic Instability E. Links between Monetary and Fiscal Policy III.               Competing Economic Theories A.     Keynesian View B.     Monetarist View C.     New Classical View V.                 Economic Growth A.     Measures of Economic Growth B. Growth and Resource Utilization C. Growth and Productivity D.     Demand Factors (C + I + G + Xn) E.     Long-term Growth Potential VI.               Globalization A.     Measuring Globalization B.     Globalization Debate C.     Globalization and Economic Growth D. Financial Crises	15 16 (optional chapter)  17 19	29, 43-46 48  47	11 12
Unit 6:  International Trade I.                    International Trade A.     Global Trade Patterns B. Absolute and Comparative Advantage C.     Sources of Comparative Advantage II. Restrictions to Trade A.     Protectionist Arguments B. Tools of Trade Restriction C. Trade Agreements III.                 Exchange Rates A.     Balance of Payments B.     Trade Deficits C. Current and Capital Accounts D.     Flexible/Fixed Exchange Rates E. Determinates of Exchange Rates	35 36  7 & 37	49-50 51  52-55