2012 Macroeconomics Syllabus

AP Macroeconomics


Teacher: Perry Walthour

Email: walthourp@duvalschools.org

School Phone: 381-3930 ext. 1157

Cell Phone: 504-5490



Students and parents should feel free to contact me at any time to discuss any concerns that may arise. I would encourage parents to contact me on a weekly basis regarding the academic progress of their child.
Parents and Students should check our class website @ www.leeapecon.blogspot.com on a daily basis for updates on various aspects of the course.
Parents please register for Oncourse in room 107 at Lee. Oncourse will allow you to check the academic ststus of your child anytime.


AP Macro Economics is a semester long, college-level course. Each student is expected to take the AP Exam that is administered in May. Successful achievement on the AP Exam allows the student to earn three hours of college credit.
AP Macro Economics is an 18 week study each of economic principles concerning individual decision makers within an economy and emphasizes economic principles as applied to the economy as a whole. The main areas of concentration include basic economic concepts; the nature and functions of product markets; factor markets; and efficiency, equity and role of government. Analysis of national income and its components, economic indicators, inflation and unemployment, money and banking, stabilization policies, and the United States and world trade. Students are expected not only to know the material but also apply critical thinking skills to the units covered.

Text
Campbell R. McConnell and Stanley L. Brue, Economics: Principles, Problems and Policies, 16th edition,McGraw-Hill Irwin.

Supplements
John S. Morton and Rae Jean B. Goodman, Advanced Placement Economics: Microeconomics, 3rd edition, National Council on Economic Education.
John S. Morton and Rae Jean B. Goodman, Advanced Placement Economics: Microeconomics, 3rd edition, National Council on Economic Education


Part I: Introduction to Economics

2 Quizzes, 2 FRQs, 1 Test
McConnell Brue Chapter 1: The Nature and Method of Economics
Morton: Activity 1
-Scarcity and Choice
-Rational Behavior
-Marginalism: Benefits and Costs
-Theoretical Economics
-ceteris paribus
-Economic Policy
-Economics Goals
-Pitfalls to Sound Reasoning
McConnell Brue Chapter 2: The Economizing Problem
-Foundations: Wants vs. Needs
-Resources: Land, Labor, Capital, Entrepreneurial Ability
-Full Employment
-Full Production
-Production Possibilities Frontier
-Law of Increasing Opportunity Cost
-Allocative Efficiency
-Unemployment and Productive Inefficiency
-Economic Growth
-International Trade
-Economic Systems: Market, Command, Transitional
-Circular Flow Model
McConnell Brue Chapter 37, International Trade
Morton: Activity 2
-Comparative and Absolute Advantage
-Trade Barriers and Free Trade
McConnell Brue Chapter 3: Individual Markets: Demand and Supply
Morton: Activity 3, 4, 5, 6, 7, 8
-Demand
-Law of Demand
-Demand Curve
-Market Demand
-Determinants of Demand
-Shift vs. Slide
-Price/Non-price factors
-Supply
-Law of Supply
-Supply Curve
-Determinants of Supply
-Shift vs. Slide
-Price/Non-price factors
-Equilibrium
-Surplus
-Shortage
-Market Clearing Price
-Rational Function of Prices
-Changes in Supply, Demand and Equilibrium
-Price Ceilings and Shortages
-Problems
Price Floors and Surpluses
-Problems
McConnell Brue Chapter 6: The United States in the Global Economy
-Specialization and Comparative Advantage
-Foreign Exchange Market
-Government and Trade
-Protectionism vs. Free Trade


Part II: Macroeconomic Measurement and Basic Concepts

1 Quiz, 1 FRQ, 1 Test
McConnell Brue Chapter 7: Measuring Domestic Output and National Income
-GDP
-Expenditure Approach
-Income Approach
-National Accounts
-Nominal GDP
-Real GDP
-Shortcomings
McConnell Brue Chapter 8: Introduction to Economic Growth and Instability
Morton: Activity 11, 12, 13, 14, 15, 16, 17, 18
-Economic Growth
-Business Cycle
-Unemployment
-Inflation
-Redistribution
-Effects


Part III: National Income, Price Determination and Fiscal Policy

3 Quizzes, 2 FRQs, 1 Test
McConnell Brue Chapter 9: Basic Macroeconomic Relationship
Morton: Activity 20, 21, 22
-Income-Consumption and Income-Saving Relationship
-Real Interest Rate – Investment Relationship
-Multiplier Effect
McConnell Brue Chapter 10: The Aggregate Expenditures Model
Morton: Activity 19
-Equilibrium GDP
-International Trade
-Public Sector
-Full-Employment
McConnell Brue Chapter 11: Aggregate Demand and Aggregate Supply
Morton: Activity 23, 24, 25
-Aggregate Demand
-Aggregate Supply
-Equilibrium
McConnell Brue Chapter 16, Analysis of Aggregate Supply
Morton: Activity 26, 27, 28, 29
-Short Run to Long Run
-Supply Shocks
-Supply-Side Policies
McConnell Brue Chapter 12: Fiscal Policy
Morton: Activity 30, 31, 32, 33
-Fiscal Policy and the AD/AS Model
-Stabilizers
-Full-Employment
-Time Lags


Part IV: Money, Banking and Monetary Policy

2 Quizzes, 1 FRQ, 1 Test
McConnell Brue Chapter 13: Money and Banking
Morton: Activity 34, 35, 36
-Functions of Money
-Supply of Money
-M1, M2 and M3
- Value
-Demand for Money
-Money Market
-Federal Reserve
McConnell Brue Chapter 14, How Money and Thrifts Create Money
Morton: Activity 37
-Fractional Banking
-Money Multiplier
McConnell Brue Chapter 15, Monetary Policy (1 day)
Morton: Activity 38, 39, 40, 41, 42, 43, 44, 45
-Tools
-Open-Market Operations
-Reserve Ratio
-Discount Rate
-Monetary Policy, Real GDP and Price Level
-Actions


Part V: Long-Run Perspectives and Macroeconomic Debates

1 Quiz, 1 FRQ, 1 Test
McConnell Brue Chapter 18, Deficits, Surpluses and Public Debt
-Budget Philosophies
-Public Debt
-Deficits and Surpluses
McConnell Brue Chapter 16, Analysis of Aggregate Supply
Morton: Activity 46
-Extended AD/AS Model
-Inflation/Unemployment Relationship
-Supply Shocks
-Phillips Curve
-Long-Run Phillips Curve
-Taxation and Aggregate Supply
-Disinflation
McConnell Brue Chapter 19, Disputes over Macro Theory and Policy
Morton: Activity 48
-Classicals
-Keynesians
-Instability
-Self-Correcting


VI. Economic Growth

1 Quiz
McConnell Brue Chapter 17, Economic Growth
Morton: Activity 47
-Factors
-PPF Analysis
-Economies of Scale
-Productivity
Part VI: International Trade (3 days)
1 Quiz, 1FRQ, 1 Test
McConnell Brue Chapter 38, Exchange Rates, Balance of Payments and Trade Deficits
Morton: Activity 49, 50, 51, 52, 53, 54, 55,
-Financing International Trade
-Balance of Payments
-Exchange Rates
-Flexible
-Fixed
-International Exchange Rate System
-Recent U.S. Trade Deficits


Grading:

Students will have the opportunity to earn a certain number of points for each assignment given. Their grade will be determined by the number of points earned divided by the number of points available. The following are point values for assignments that will be given in the class:
Test = 100 points each.
Essays = 100 points each
Homework = 10 points each
Class Participation= 100 points overall


Class Participation:

All students are expected to be fully prepared and to participate actively in class discussion. Some students are more comfortable speaking publicly than others; therefore students who merely listen and are attentive will be considered to be actively participating in the lesson. All students must remain 100 per cent engaged throughout the course of the lesson. Sleeping, inattentiveness, and distractive behavior do not constitute active engagement, and any such conduct will bear heavily in my mind when grades are determined. No one is perfect, and occasional lapses are to be expected; for that reason, warnings will be given liberally before anyone is penalized. However any student who continuously or persistently fails to participate will be penalized. Students who are reading, working on assignments for other classes, or otherwise consciously disengaged will warrant immediate sanction. Please don’t insult my intelligence by telling me you can do two things at once.

. Due Dates:

All assignments will be due at the tardy bell on the date designated. Assignments handed in any time after the tardy bell, including those handed in during or immediately after class are late, and will be penalized ten points for each day they are late. Assignments not handed in by the tardy bell on the third day will not be accepted, and a grade of zero assigned. I reserve the right to require essays to be turned in at the beginning of the school day if circumstances warrant.

The intense level of work required in an Advanced Placement Course is such that daily attendance is essential to success. Students should take care that they are absent from class only when attendance is impossible. Students who are absent are responsible for all missed work. Those students who present an excused absence report from the school attendance office will be allowed three school days to complete missed assignments. This time may be extended for good cause shown. Students who fail to present an excused absence report will not be allowed to complete missed work and a grade of zero will be assigned. Additionally, students who fail to complete makeup work within three school days will receive a grade of zero. There will be no exceptions to this rule. Work eaten by dogs or computers is no excuse. It is the student's responsibility to complete missed work within the designated time limit. Reminders will not be given.


Extracurricular Activities:

The very nature of Advanced Placement courses requires that students commit substantial time to completion of readings, essays, etc. Students who wish to be successful in the course and on the economics examination must be willing to apportion their time judiciously. There are no shortcuts. It is entirely possible, even likely, that out of class preparation time will interfere with extra curricular activities, sports, courtship, work, etc. The choice of priorities is yours; however do not expect sympathy or understanding if your grade is adversely affected..


The Advanced Placement Examination:

The Micro/Macroeconomic Examination is scheduled for 8:00 a.m., Tuesday, May 17, 2012 at 8 AM.Florida law requires that all students enrolled in Advanced Placement courses sit for the examination. All fees for the examination are paid by the Duval County School Board. Scores on the exam range from 1 – 5 with 5 the highest. Three or better is considered a successful grade. Students who score three or higher may be entitled to college credit. Individual colleges determine the necessary scores required before credit will be awarded. Any and all students who score a grade of FIVE on the Micro/Macroeconomics exam are entitled to a dinner for two at a restaurant of your choice on my tab. Go for it!


. Academic Integrity:

All work turned in for credit must be the student’s own original work; it must not be plagiarized nor obtained by any other dishonest or inappropriate means. Assistance or coaching from any third person, including but not limited to former students, parents, etc. on any work submitted for credit is inappropriate. All computer generated work turned in for credit must be accompanied by a floppy disk with the student's name written legibly on an outside label. Additionally, all work submitted for credit of any kind (quizzes, tests, summaries, essays, etc) must be signed at the foot of the last page by the student. Your signature constitutes your attestation that the work is your own. Unsigned work will be returned unread, and the normal penalty for late work applied.

Typical college policy for academic dishonesty is expulsion from the institution for the first offense. Students who receive inappropriate assistance or commit any act of academic dishonesty, including but not limited to plagiarism, use of published summaries in place of assigned readings (Cliff's Notes, Sparks Notes, Pink Monkey, etc), snooping to copy answers from other students, crib sheets, etc, are guilty of theft, and will receive a grade of zero for the assignment. Additionally, the student’s parents, the National Honor Society, and Educational testing service will be notified. A signed report of the incident will be placed in the student’s scholarship file with appropriate recommendations..


I will be available every Thursday afternoon at 1:45 sharp to answer any questions or to provide extra help or tutoring. Please take advantage of this help opportunity.



Classroom Behavior:

All members of the class will show respect to all other members of the class at all times.

Hats and electronic devices are not allowed in my class. I do not want to see them.

Food and drink are not allowed in class. Water is allowed.

Please come prepared for class every day. (Textbook, Pen and or pencil, Notebook Paper, Notebook.)


A Final Word:

Rest assured that I understand and appreciate more than anyone the difficult nature of this course and the demands on your time which will often appear unreasonable. The course has been designed to satisfy the requirements of Educational Testing Service, which sponsors the Advanced Placement Program; not out of any desire to punish or mistreat my students, all of whom are very special to me. I hope that you will feel free to contact me at any time with any question or concern. I will not be upset if you call me on weekends or at night (provided the hour is reasonable, of course.), and that you understand that I will do all I can to assist you. REMEMBER: (1) The only stupid question is the one you do not ask, and (2) The only time I will get angry with you is if you have a problem and DON'T share it with me.
I look forward to a great year of learning with each of you!

Supply and demand questions

1. Assume that the economy of the country of Alpha is experiencing increasing unemployment. Steak is considered a normal good in Alpha. Using the supply and demand graph illustrate the impact of the increasing unemployment on the market for steak in Alpha.
2. Assume that the economy of the country of Alpha is experiencing increasing unemployment. Hamburger is considered an inferior good in Alpha. Using the supply and demand graph illustrate the impact of the increasing unemployment on the market for steak in Alpha.
3. The country of Alpha experiences an increase in immigration that leads to an additional one million consumers. What will be the affect on this immigration on Grog the popular drink of Alpha. Illustrate the impact on price and output using a supply and demand graph.
4. A plague has a devastating impact on the population of Alpha. Illustrate using a supply and demand graph how this will impact the market for chicken.
5. The government of Alpha imposes a per-unit tax on Brureff soda. Given that Brureff has a relatively elastic demand, illustrate the impact of this tax on price and quantity using a supply and demand graph.
6. The government of Alpha imposes a per-unit tax on Brureff soda. Given that Brureff soda has a perfectly inelastic demand, illustrate the impact of this tax on price and quantity using a supply and demand graph.
7. Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the price and quantity of coffee.
8. Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the price and quantity of cream.
9. The two favorite juice drinks in the Alpha economy are reffberry and fruitbru. Consumers enjoy both drinks but some have a slight preference for reffberry while others have a slight preference for fruitbru. The makers of reffberry have invested in new technology that increases their productivity. This technology is not yet adaptable for the production of fruitbru. Use a supply and demand graph to illustrate the impact of the new technology on the reffberry market.
10. The two favorite juice drinks in the Alpha economy are reffberry and fruitbru. Consumers enjoy both drinks but some have a slight preference for reffberry while others have a slight preference for fruitbru. The makers of reffberry have invested in new technology that increases their productivity. This technology is not yet adaptable for the production of fruitbru. Use a supply and demand graph to illustrate the impact of the new technology on the fruitbru market.
11. Gasoline powered autos and electric powered autos are substitute goods and have relatively elastic demands. Assume that the price of gasoline increases by 30 percent. Use a supply and demand graph to illustrate the impact of this increase in the price of gasoline on the market for gasoline powered autos.
12. Gasoline powered autos and electric powered autos are substitute goods and have relatively elastic demands. Assume that the price of gasoline increases by 30 percent. Use a supply and demand graph to illustrate the impact of this increase in the price of gasoline on the market for electric powered autos.
13. A major news source reports an outbreak of salmonella affects the peanut butter snacks industry. Use a supply and demand graph to illustrate the immediate impact on price and quantity of this news
14. In the past,the cost of Private University is $45,000 per year and the cost of State University is $17,000 per year. Both universities have a fixed number of seats available for the coming school year. Both schools have excellent academic reputations. A major recession occurs. Assume that both universities have tuition costs that are influenced by the number of applications they receive. Use a supply and demand graph to illustrate the impact of the recession on price and quantity for Private University.
15. In the past, the cost of Private University is $45,000 per year and the cost of State University is $17,000 per year. Both universities have a fixed number of seats available for the coming school year. Both schools have excellent academic reputations. A major recession occurs. Assume that both universities have tuition costs that are influenced by the number of applications they receive. Use a supply and demand graph to illustrate the impact of the recession on price and quantity for State University.
16. The domestic steel industry of Alpha competes with imported steel from the country of Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply and demand graph to illustrate the impact of the subsidies on steel made in Tucumcari.
17. The domestic steel industry competes with imported steel from the country of Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply and demand graph to illustrate the impact of the subsidies on the price and quantity of steel made in Alpha.
18. The domestic steel industry competes with imported steel from the country of Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply and demand graph to illustrate the impact of the subsidies on the wage and quantity of workers in the market for steel workers in Alpha.

19. The pork industry is dominated by large corporate farms that pollute the underground water table with waste material from the slaughter of pigs. The farms ignore this pollution. Use a supply and demand analysis to illustrate the impact of this avoidance on the pork industry.
20. Assume that the favorite dating activity of teenagers is going out to dinner. The second favorite dating activity of teenagers is going out for ice cream. Assume that because of a recession there will be far fewer jobs available for teenagers this summer. Use a supply and demand graph to illustrate the impact of fewer jobs on the price and quantity of the typical dinner meal at a restaurant.
21. Use a supply and demand graph to illustrate the effects on price and quantity of milk from the following simultaneous events:
A. The cost of feed used for milking cows increases.
B. A highly regarded scientific study reveals that drinking two glasses of milk a day helps to reduce weight.

22. Use a supply and demand graph to illustrate the effects on price and quantity college enrollment from the following simultaneous events:

A. The government provides additional money for college scholarships directly to high school seniors.
B. Because of serious loss of value in their endowments, colleges reduce the number of faculty by an average of 20%.

23. Use a supply and demand graph to illustrate the effects on the market price and quantity of steel from the following simultaneous events:

A. The government provides health care insurance that reduces the cost of labor to industry.
B A major project to renovated bridges increases the need for steel.

24. Use a supply and demand graph to illustrate the effects on the market price and quantity of oil from the following simultaneous events:

A. Alternative energy resources begin to provide 20% of energy needs to businesses and households.
B. A tariff is imposed on imported oil.

25. Use a supply and demand graph to illustrate the effects on the market price and quantity of bricked patios from the following simultaneous events:

A. Masons take a 25% cut in pay
B. Unemployment reaches 10%

February Essay

Governor Crist Invites Students to Participate in Sunshine Week Essay Contest

https://webmail.duvalschools.org/exchweb/bin/redir.asp?URL=http://www.flgov.com/og_home

TALLAHASSEE – Governor Charlie Crist today announced Florida’s 2010 Sunshine Week “Government in the Sunshine” Web site and invited Florida students in grades 9-12 to participate in the Florida Sunshine Week essay contest. Observed March 14-20, 2010, Sunshine Week celebrates Florida’s laws dedicated to making state and local government more accessible to the public.

“This year’s Sunshine Week Essay Contest provides an opportunity for high school students to focus on the First Amendment and the importance of open government,” said Governor Crist. “Openness and transparency must be one of government’s top priorities in order to ensure citizens can continue to hold their leaders accountable.”

The essay contest is open to all Florida high school students in grades 9-12 and the winner will be announced during the week of March 8, 2010. The first-place winner will receive a $2,500 scholarship, the second-place winner will receive a $1,500 scholarship, and third place will receive a $1,000 scholarship. The contest is supported through the Volunteer Florida Foundation. Winners will be invited to attend an event at the Governor’s Mansion.

Guidelines

After reading the First Amendment to the United States Constitution, contest participants must explain the importance of one or more of the civil liberties found in the First Amendment and how Florida’s open government laws protect these liberties.
Each student may enter only one essay, no longer than 500 words and typed or handwritten in print, rather than cursive writing.
Essays must include the student’s name, home address, telephone number, school the student attends, grade level and essay title.
Essays must be accompanied by a parental waiver form, which can be found at https://webmail.duvalschools.org/exchweb/bin/redir.asp?URL=http://www.flgov.com/og_sunshine_essay. For electronic entries, the parental waiver may be typed, but if chosen as a winner it will be verified.

Entries must be emailed to SunshineEssay@myflorida.com or mailed to: The Executive Office of the Governor, Attention: Sunshine Week Essay Contest, 400 South Monroe Street, The Capitol, Suite PL-04, Tallahassee, Florida 32399-0001. Entries must be emailed or postmarked no later than 5:00 p.m. EST on Thursday, February 18, 2010.

In addition to the essay contest this year, teachers also have the opportunity to engage their students in activities relating to “Government in the Sunshine." The crossword puzzle and word search may be accessed and downloaded at file:///C:/Documents%20and%20Settings/carrinj/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/OLK54/www.flgov.com/og_sunshine.

About Sunshine Week

In 2002, Sunshine Sunday was launched by the Florida Society of Newspaper Editors in response to increased public and legislative awareness of the open government laws. After Florida’s trailblazing actions to establish Sunshine Laws, many other states have adopted Sunshine Sunday, which resulted in the American Society of Newspaper Editors designating a Sunshine Week, which started in March of 2005.

Governor Crist’s dedication to the Sunshine Laws is clearly evident. In his inaugural address, Florida’s 44th Governor made open government a top priority. He quoted President Abraham Lincoln, pledging under his watch Florida government would be “of the people, by the people and for the people.” The next day in his first Executive Order, Governor Crist established the Office of Open Government and charged it with providing the Governor’s Office and all state agencies the tools necessary to serve the people of Florida in a professional and efficient manner.

For more information, please visit www.flgov.com/og_home.

Please see the First Amendment:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Please see Sunshine Law @ http://www.myflsunshine.com/sun.nsf/pages/Law

# # #

January Essay Prompt

3. Two competing retail firms, Red Shop and Blue Mart, are studying potential locations for new stores in the
suburbs of a major city. Each firm must choose between a location north of the city and a location south of the
city. The payoff matrix is shown below, with the first entry in each cell indicating Red Shop’s daily profit and
the second entry indicating Blue Mart’s daily profit. Both firms know all of the information in the payoff matrix.
Blue Mart
North South
North $900, $1,800 $3,000, $3,500
Red Shop
South
$5,000, $4,000 $1,500, $1,000
(a) If Red Shop chooses a location south of the city, which location is better for Blue Mart? Explain.
(b) Is choosing a location to the south of the city a dominant strategy for Red Shop? Explain.
(c) If the two firms cooperate in choosing locations, where will each firm locate?
(d) Assume that the south suburb has enacted an incentive package to attract new business. Any firm that
locates south of the city will receive a subsidy of $2,000 per day. Redraw the payoff matrix to include the
subsidy.
STOP
END OF

December Essay Prompt

The firm of Chowenhill and Walthour is said in the long run to exhibit both allocative efficiency and productive efficiency.
What type of market do Chowenhill and Walthour operate in and what determines that that market is allocatively efficient.
In your explaination be sure to provide clear examples of how this is possible.

Progress Reports!!!!!

Parents and Students, Progress reports are being sent out on Thursday and Friday, October 1 and 2. Please be advised and ask your child to give them to you. I have insrtucted them to give them to you. Please call me if you have questions.
Also please call the school and register for Oncourse so that you may have access to your child's grades anytime.

Essay Assignment #1

Please answer the following question in essay form.
Please refer to the FCAT Essay rubric for guidance.
Feel free to use this website and the textbook website for links to research sources.

President Obama is proposing that college be available for all. Develop an argument to support or oppose this proposal.