Course Overview:
In this course, students establish the fundamentals of economics with a survey of scarcity, opportunity cost, supply, demand, and market equilibrium. They then zoom out to the largest scale of economic analysis, learning the indicators of whole countries’ economic health, specifically gross domestic product, unemployment, and price level. With that foundation, the rest of the course looks at fiscal and monetary policies, their consequences, and the basics of international trade and the foreign exchange market. Besides being intentionally prepared for the AP Exam, students will gain a much deeper understanding of the world around them, the roles that government and banks play in an economy, and the economic outcomes generated by their policy decisions.
Prerequisites:
Required Materials:
Often students and parents ask for extra practice or examples to supplement the AP Macroeconomics on-line material. This course covers, at an intense level, all of the concepts tested on the College Board AP Macroeconomics Exam and provides all the lessons that you will need to gain a comprehensive understanding of Macroeconomics. However, there are times when extra practice can be both necessary and beneficial. We recommend that you purchase one of the following review books. You can purchase these books on-line at www.amazon.com and most book stores. These texts can also be found at your local library.
- Steps to a 5: AP Microeconomics/Macroeconomics
- The Princeton Review for AP Economics
- Barron's AP Micro/Macro Economics
These books are not a requirement of the course. Your instructor will not collect or grade any of the work that you choose to do in the books. The books will act as an extra resource. By purchasing and using the books, you will gain a more solid foundation in Macroeconomics.
Syllabus:
Segment 1:
- Overview of Advanced Placement
- Economic Basics
- Scarcity and Opportunity Costs
- Production Possibilities Curves
- Absolute and Comparative Advantage
- Demand
- Supply
- Equilibrium
- Government Impact
- Circular Flow
- GDP
- Other Measures of National Income
- Inflation and Price Indices
- Business Cycle
- Unemployment
- Classical Economics
- Aggregate Supply
- Aggregate Demand
- Propensities and Multipliers
- Equilibrium
- Economic Growth
- The AE Model
- Understanding the AD/AS Model
- Comparative Advantage and International Trade
- Balance of Payments
- Exchange Rates
- Graphing Foreign
Required Materials:
Student-Supplied Resources:
- A calculator is recommended but not required
- Notebook or graphing paper
- Writing utensils
- A method to scan or take pictures of graphs drawn by hand
The AP Macroeconomics Course and Exam Description is a free material provided by College Board that outlines the skills and content taught within the AP Macroeconomics course.
If you are interested in supplemental texts, the following are appropriate college-level resources that support the AP Macroeconomics Course and Exam Description from College Board:
- Greenlaw, Steven A., and David Shapiro. Principles of Macro-economics. Houston, TX: OpenStax.
- Anderson, David, and Margaret Ray. Krugman's Economics for the AP®Course. New York, NY: Worth Publishers.
You may also consider the following optional test prep materials:
- 5 Steps to a 5: AP Macroeconomics, McGraw-Hill Education
- Cracking the AP Economics Micro & Macro Exams,The Princeton Review
- Barron's Test Prep AP Microeconomics/Macroeconomics, Barrons Educational Series
The books will act as an extra resource. While recommended, they are not required in order to complete the course.
School-Supplied Resources:
Throughout the course you will be required to complete practice in the style of the AP Exam. Please reach out to your instructor regarding which resource(s) you should use. Free resources exist on the AP Central website.
Free Downloads:
Syllabus:
Module 01: Basic Economic Concepts
- 01.00 Basic Economic Concepts Introduction
- 01.01 Scarcity
- 01.02 Opportunity Cost and the PPC
- 01.03 Comparative Advantage and Gains from Trade
- 01.04 Demand
- 01.05 Supply
- 01.06 Market Equilibrium, Disequilibrium, and Changes in Equilibrium
- 01.07 Basic Economic Concepts Review and DBA
Module 02: Economic Indicators and the Business Cycle
- 02.00 Economic Indicators and the Business Cycle Introduction
- 02.01 The Circular Flow and GDP
- 02.02 Limitations of GDP
- 02.03 Unemployment
- 02.04 Price Indices and Inflation
- 02.05 Costs of Inflation
- 02.06 Real v. Nominal GDP
- 02.07 Business Cycles
- 02.08 Economic Indicators and the Business Cycle Review
Module 03: National Income and Price Determination
- 03.00 National Income and Price Determination Introduction
- 03.01 Aggregate Demand (AD)
- 03.02 Multipliers
- 03.03 Short—Run Aggregate Supply (SRAS)
- 03.04 Long—Run Aggregate Supply (LRAS)
- 03.05 Equilibrium in the Aggregate Demand—Aggregate Supply (AD—AS) Model
- 03.06 Changes in the AD—AS Model in the Short—Run
- 03.07 Long—Run Self—Adjustment
- 03.08 Fiscal Policy
- 03.09 Automatic Stabilizers
- 03.10 National Income and Price Determination Review and DBA
Module 04: Financial Sector
- 04.00 Financial Sector Introduction
- 04.01 Financial Assets
- 04.02 Nominal v. Real Interest Rates
- 04.03 Definition, Measurement, and Functions of Money
- 04.04 Banking and the Expansion of the Money Supply
- 04.05 The Money Market
- 04.06 Monetary Policy
- 04.07 The Loanable Funds Market
- 04.08 Financial Sector Review and DBA
Module 05: Long-Run Consequences of Stabilization Policies
- 05.00 Long—Run Consequences of Stabilization Policies Introduction
- 05.01 Fiscal and Monetary Policy Actions in the Short Run
- 05.02 The Phillips Curve
- 05.03 Money Growth and Inflation
- 05.04 Government Deficits and the National Debt
- 05.05 Crowding Out
- 05.06 Economic Growth
- 05.07 Public Policy and Economic Growth
- 05.08 Long—Run Consequences of Stabilization Policies Review
Module 06: Open Economy—International Trade and Finance
- 06.00 Open Economy—International Trade and Finance Introduction
- 06.01 Balance of Payments Accounts
- 06.02 Exchange Rates
- 06.03 The Foreign Exchange Market
- 06.04 Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market
- 06.05 Changes in the Foreign Exchange Market and Net Exports
- 06.06 Real Interest Rates and International Capital Flows
- 06.07 AP Practice Exam Part A and Part B
- 06.08 Open Economy—International Trade and Finance Review and DBA
