AP Macroeconomics

Description

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.

Module 1: Basic Economic Skills and Concepts
Scarcity
Opportunity cost and the production possibilities curve (PPC)
Comparative advantage and gains from trade
Demand
Supply
Market equilibrium, disequilibrium, and equilibrium changes

Module 2: Economic Indicators and the Business Cycle
Circular flow and gross domestic product (GDP)
Limitations of GDP
Unemployment and its measures
Inflation and price indices
The costs of inflation
Real v. nominal GDP
Business cycles

Module 3: National Income and Price Determination
Aggregate demand (AD)
Multipliers
Short-run aggregate supply, long-run aggregate supply, and equilibrium in the AD–AS model
Short-run changes in the AD–AS model
Long-run self-adjustment
Fiscal policy
Automatic stabilizers

Module 4: Financial Sector
Financial assets
Nominal v. real interest rates
Money: its definition, measurement, and functions
Banking and the money supply
The money market
Monetary policy
The loanable funds market

Module 5: Long-Run Consequences of Stabilization Policies
Short-run consequences of fiscal and monetary policy actions
The Phillips curve
Money growth and inflation
Government deficits and national debt
Crowding out
Economic growth
Public policy and economic growth

Module 6: Open Economy—International Trade and Finance
Balance of payments accounts
Exchange rates
The foreign exchange (FOREX) market
Effect of changes in policies and economic conditions on the FOREX market
Changes in the FOREX market and net exports
Real interest rates and international capital flows

Additional Course Notes:

AP courses may require that students purchase a textbook to complete the course. eLearning Academy does not offer the AP exams or issue a teacher code for exam registration.  You do not have to take the course to register for the exam.  The course is to help  you prepare for the exam.  When you register for the exam, you can register as a homeschooler without a teacher code. If you have questions about this process, please call us before paying for the course.

Prerequisites: Algebra 1 recommended

Suggested Grade Level: 10

Credits: 1