# AP Macroeconomics

## bit.ly/APMacroeconomics

| Course Syllabus | Schedule of All Homework (Cornell Notes & Problems) | Answer Key to Homework (must use AAPS student email login) |

3.7.2018: Final Exam (worth 100 product points total)

• Use #2 pencil only on multiple choice (40 questions = 40 points total)
• Use black or blue pen only on free response questions (3 questions = 60 points total)

3.6. 2018: Exam Review Day 6 (bring #2 pencil and blue or black pen for final exam)

- Participate in final Q&A for exam review

- Go over student misconceptions

Featured Sources:

3.5. 2018: Exam Review Day 5

- Go over common student questions

- Practice multiple choice and free response questions

Featured Sources:

3.2. 2018: Exam Review Day 4

Challenge Question:

Choose a key concept you have learned about in AP Macro, and

explain in three sentences how it relates back to the fundamental economic problem.

- Evaluate what gaps in your knowledge still exist

- Practice multiple choice and free response questions

Featured Sources:

3.1. 2018: Exam Review Day 3

Challenge Question:

Pick a graph that you have learned about in AP Macro, and explain the two axes,

the shape of each of the curves, and why it is important.

- Practice multiple choice and free response questions

Featured Sources:

2.28. 2018: Exam Review Day 2

Challenge Question:

Write out and explain three formulae that you think are the most important in AP Macro.

- Pool knowledge on important formulae

- Practice multiple choice and free response questions

Featured Sources:

2.27. 2018: Exam Review Day 1

Challenge Question: What chapter do you feel least and the most confident about, and why?

- List the key concepts that you are the most/ least comfortable with

- Practice multiple choice and free response questions for Ch. 1-3, 8, 19-20

Key Concepts:

Chapter 1, 2, 3, 8, 19, 20

Featured Sources:

2.26. 2018

Big Debate Day:

Should the U.S. government pursue a strong dollar policy, weak dollar policy, or

be completely hands-off the FOREX for the U.S. dollar and let it fluctuate significantly? (Chapter 30)

- Write an opening statement and claim, evidence, reasoning for debate question

- Debate on what types of exchange rate policy is the best for the U.S.

Key Concepts:

- Ch. 29 and 30 concepts

Featured Sources:

- Project Syndicate' take on flexible exchange rates: https://www.project-syndicate.org/commentary/flexible-exchange-rates-trade-impact-by-gita-gopinath-2017-12

- Bloomberg article on the cons of floating exchange rates: https://www.bloomberg.com/news/articles/2017-10-20/floating-exchange-rates-can-cause-big-trouble

-Debate on strong dollar policy: https://www.intelligencesquaredus.org/debates/america-doesnt-need-strong-dollar-policy

- A summary of the costs and benefits of different exchange rate systems. https://www.thebalance.com/fixed-exchange-rate-definition-pros-cons-examples-3306257

2.23. 2018

Challenge Questions:

1. If you were a tourist and you were planning a trip to Italy, would you prefer an exchange rate of 2 Euro to the dollar or 1.25 Euro to the dollar? Explain.
2. Should the U.S. government pursue a strong dollar policy, weak dollar policy, or be completely hands-off the FOREX for the U.S. dollar and let it fluctuate significantly? --> Big Debate Question for Monday

- Vote on and solve homework questions on foreign exchange

- Research on big debate (time permitting)

Key Concepts:

- Ch. 29 and 30 concepts

Featured Sources:

- Project Syndicate' take on flexible exchange rates: https://www.project-syndicate.org/commentary/flexible-exchange-rates-trade-impact-by-gita-gopinath-2017-12

- Bloomberg article on the cons of floating exchange rates: https://www.bloomberg.com/news/articles/2017-10-20/floating-exchange-rates-can-cause-big-trouble

2.22.2018

• Test on Chapters 25-28.

2.21. 2018

Challenge Questions:

1. The U.S.'s trade deficit has hit new highs as of early February 2018. Should the U.S. therefore impose

2. Imagine you are an investor looking to put your money in banks abroad. How would interest rates in

- Explain the relationship between interest rates, savings, and net foreign investment

- Construct a graph showing the effect of interest rate on an exchange rate system.

- Evaluate the costs and benefits of different exchange rate systems

Key Concepts:

- Financial account

- Interest rates (review)

- Savings and net foreign investment

Featured Sources:

- A summary of the costs and benefits of different exchange rate systems. https://www.thebalance.com/fixed-exchange-rate-definition-pros-cons-examples-3306257

2.20. 2018

Challenge Questions:

1. The U.S. dollar's price dropped in the last week from about 109 yen to the dollar to about 106 yen to the dollar.

How might this hurt or benefit you as a U.S. citizen? Explain.

2. Have you ever exchanged your dollars for another currency abroad? Explain your decision-making process (or imagine it,

if you have never exchanged currency about how much and when you decided to exchange your U.S. dollars).

- Define balance of payments and current account

Key Concepts:

- Balance of payments

- Exchange rates (float, fixed,managed float)

- Current account

Featured Sources:

- Forbes article on recent exchange rate fluctuations: https://www.forbes.com/sites/briandomitrovic/2018/02/06/the-dollar-euro-exchange-rate-sure-is-the-most-important-price-in-the-world/#6ebf342d2412

2.15. 2018

Challenge Questions:

1. Based on what you currently know about the U.S. economy, what type of policy do you think the government should pursue?
2. To what extent is the government responsible for the growth and prosperity of an economy?

- Compare and contrast fiscal, monetary, and supply side policies.

- Identify the type of economic policies presented in short texts

Key Concepts:

- Monetary, fiscal, and supply-side policies.

Featured Sources:

- Source packet (hard copies handed out in-class)

2.14. 2018 (AP Fair at both lunches today)

Challenge Questions:

1. How do shifts in AD and AS translate to movements along vs. shifts of the Philips curve?
2. The OECD Employment Outlook for 2017 states that the labor market in developed countries is "subdued but generally favorable....

with the OECD average unemployment rate inching downwards from 6.2% to 5.7%." What would this look like on an AD-AS graph, and

what limitations are there to using this information to assess standard of living?

- Vote on and solve homework questions on the Philips curve

Key Concepts:

- Short-run and long run Philips curve

- Movements along v.s. shifts of the Philips curve

- Rational expectations

Featured Sources:

- Ch. 27 HW Questions

- NYT article on the Philips curve: https://www.nytimes.com/2018/02/07/upshot/the-stock-market-is-worried-about-inflation-should-it-be.html

2.13. 2018

Challenge Questions:

1. Write your reaction to this tweet by Sarah Sanders, White House press secretary:

"Great news for American workers: economy added 235,000 new jobs, unemployment rate

drops to 4.7% in first report for POTUS Trump." (March 2017)

2. Deputy press secretary Raj Shah recently tweeted, "The lowest [black unemployment rate] in

nearly 5 decades and a credit to @ POTUS economic policies!!" What are your thoughts on this tweet?

- Explain the relationship between unemployment and inflation in the short and long-run

- Illustrate the relationship between unemployment and inflation using the short run and long run Philips curve.

- Illustrate the effect of supply shocks on the Philips curve.

Key Concepts:

- Unemployment (review)

- Inflation (review)

- Natural rate of unemployment

- Short-run and long run Philips curve

- Movements along v.s. shifts of the Philips curve

Featured Sources:

- Forbes article on unemployment rates: https://www.forbes.com/sites/eriksherman/2018/02/02/that-historically-low-black-unemployment-rate-just-jumped-almost-1/#718a6fe95e82

2.12.2018

Big Debate Day (for Ch.27, due to snow day last Friday)

"Should income taxes be raised significantly on upper income Americans (i.e. double the top marginal tax rate from 35% to 65%) to help pay for all federal government spending, and not run a budget deficit, and not add to the national debt?"

- Evaluate the effectiveness of fiscal policy as a government intervention strategy through a big debate

Key Concepts:

- Ch. 27 Concepts

Featured Sources:

- Forbes article on the recent state of the U.S. deficit: https://www.forbes.com/sites/stancollender/2018/01/31/trumps-sotu-an-even-bigger-budget-deficit-and-national-debt-are-on-the-way/#518161b050da

- NYT on taxed and the increasing deficit: https://www.nytimes.com/interactive/2017/11/28/us/politics/tax-bill-deficits.html

2.9.2018 - No school, snow day.

2.8.2018

Challenge Question::

Should past data or economic theory inform policy decisions?

- Identify strengths and weaknesses in your understanding of final policy by voting on and solving homework questions

- Ask and submit one question about fiscal policy at the end of the lesson

Key Concepts:

- Multiplier Effect

- Crowding out

Featured Sources:

- The Wall Street Journal, critique of Keynesian policy https://www.wsj.com/articles/SB10001424052702304707604577421470763959772

2.7.2018: Snow day

2.6. 2018

Challenge Questions:

1. Are the tradeoffs of implementing fiscal policy worth short-term growth?
2. How does the makeup of Obama's 2009 fiscal package and Trump's recent stimulus package differ?
3. What are your reactions to U of M Professor Justin Wolfers recent tweets? Explain. (Tweets will be projected on screen).

- Illustrate the effects of fiscal policy using an AD-AS diagram

- Calculate the effects of fiscal policy using the multiplier effect equation.

Key Concepts:

- Expansionary and contractionary fiscal policy

Featured Sources:

- Washington Post article on fiscal policy: https://www.washingtonpost.com/news/wonk/wp/2018/02/03/the-u-s-government-is-set-to-borrow-nearly-1-trillion-this-year/?utm_term=.4aca52d2aa4a

- Vlog Bothers video (2016) on Trump's budget: https://www.youtube.com/watch?v=A3h5kcNHVxA

2.5. 2018

Challenge Questions:

1. What are your thoughts on the following statement made by President Trump in May 2016:

“The U.S. will never default beause you can print the money.”

2. President Trump’s recent fiscal policies include increasing spending on construction on infrastructure.

Do you think this is effective fiscal policy?

- Define and give examples of fiscal policy

- Summarize the main points in Chapter 27

Key Concepts:

- Fiscal Policy

- Automatic Stabilizers

Featured Sources:

- Obama on National Debt: https://www.youtube.com/watch?v=8P8DRQjqCac

2.2.2018

Big Debate Day:

• Who was primarily to blame (most at fault) for the 2007-2009 housing crash and financial crisis:
• The Federal Reserve ("the Fed") for keeping interest rates low;
• The U.S. Congress for deregulating commercial banks;
• The banks that made the home loans to people; or
• The homeowners (consumers) that took out the loans.
• Agree or disagree: "Monetary policy in the U.S. has historically been more successful than unsuccessful at stimulating economic growth."

- Write an opening statement in the from C + EV + R

- Debate on the success of monetary policy

Key Concepts:

- Chapter 26 concepts

Featured Sources:

- OECD Database: http://www.oecd.org

- The Fed's summary of monetary policy through the years: https://www.federalreserve.gov/newsevents/speech/kohn20070921a.htm

2.1.2018

Challenge Questions:

1. What are some restrictions and advantages of monetary policy as a way to stimulate economic growth?
2. How did the Fed respond to financial crisis such as the one in 2007-2008?

- Analyze the response of the Fed during financial crises

- Prepare for the big debate on differing views on monetary policy

Key Concepts:

- Chapter 26 concepts

Featured Sources:

1.31.2018

Challenge Questions:

1. To what extent does the federal funds rate determine the next few years of growth for an economy?
2. How does the Fed choose its target (interest rate/money supply)?

- Vote on homework questions

- Show the effect of monetary policy on an AD/AS diagram

Key Concepts:

- Chapter 26 concepts

Featured Sources:

- Hubbard Ch. 26 HW answers and summary

1.30.2018

Challenge Questions:

1. What is the relationship between the MS/MD and AD/AS diagrams?
2. To what extent does the MS/MD diagram represent the effectiveness of monetary policy in real life?
3. Has the Fed's quantitive easing under Yellen's tenure set the U.S. economy for another economic bust?

- State the Feds' two targets of monetary policy

- Show the effects of contractionary and expansionary monetary policy on the MS/MD graph

- Analyze the effects of monetary policy on AD/AS through a news article

Key Concepts:

- Monetary Policy (expansionary and contractionary)

- Interest Rates

Featured Sources:

- Japan's 2018 monetary policy: http://sbr.com.sg/economy/asia/japans-neutral-monetary-policy-drive-prices-in-2018

News articles on Janet Yellen's tenure at the Fed and implications for the future:

1.29. 2018

Challenge Questions:

1. What are open market operations, and what are some recent examples of their use?
2. Why is the money supply curve vertical?

- Review last week's concepts: T-Charts and Excess Reserves

- Define open market operations

- Construct a graph for money supply and demand

Key Concepts:

- Excess reserves

- Open market operations

- Money Supply/Money Demand

Featured Sources:

- AP Question w/ T-Chart #1: https://secure-media.collegeboard.org/apc/ap12_frq_macroeconomics.pdf

- AP Question w/ T-Chart #2: https://secure-media.collegeboard.org/apc/ap11_frq_macroeconomics.pdf

- "Crisis of Credit" video from last week

1.26.2018

Big debate day (Challenge Question):

• Agree of disagree: "Bitcoin is successful only because of its potential for circumvention, lack of oversight.” (Joseph Stiglitz).
• Should the U.S. government be completely hands-off, or ban completely, the use of Bitcoin currency in the U.S. economy?

- Big debate on the Challenge Question.

- Write opening statement for the debate

Key Concepts:

- Ch. 25 key terms

- Monetary policy

Featured Sources:

1.25.2018

Challenge Questions:

1. : How well does the quantity theory of money fit historical examples of hyperinflation?
2. Should the U.S. government tighten regulations on cryptocurrency?

- Analyze economists' views on regulating money supply

- Evaluate the QTM through examples of hyperinflation in history

- Prepare and research for the big debate

Key Concepts:

- Hyperinflation

Featured Sources:

- Summary of hyperinflation through history: http://www.businessinsider.com/worst-hyperinflation-episodes-in-history-2013-9#hungary-august-1945-july-1946-1

1.24.2018

Challenge Questions:

1. How does the reserve ratio impact the money supply in an economy?
2. Do you believe there should be a new "gold standard"? Why or why not?

- Vote on homework questions to review from Chapter 25

- Calculate M, V, Y, P given the other variables in the QTM equation

- Calculate the money multiplier using the reserve ratio

- Explain how having a gold standard prevents hyperinflation using the QTM

Key Concepts:

- The quantity theory of money (QTM)

- Money velocity

- Reserve ratio

Featured Sources:

1.23.2018

Challenge Questions:

1. How is the term “money” in economics different from “money” as we use the term in daily life?
2. What examples of "money" can you think of besides the cash we use on a daily basis?

-- Explain the functions of money

- Define the types of money (M1 and M2)

- Identify examples and non-examples of money

Key Concepts:

- Types of Money (M1, M2)

- Functions of money

- Liquidity

Featured Sources:

- Crash Course video on Money: https://www.youtube.com/watch?v=94BtOtGVqLw

1.22.2018

• Test: Chapters 21, 22, 23, 24

1.19.2018

Challenge Question:

Big debate question from the previous lesson (vote on which one has the more even split).

- Participate in debate, either verbally or in writing

- Turn in written debate prep (Opening Statement only)

Key Concepts:

- Macroeconomic Equilibrium

- Shifters of AD/AS (supply shocks/fiscal/monetary policy)

- LR vs SR equilibrium

Featured Sources:

- Sources from this week

1.18.2018

Challenge Questions:

1. Agree or disagree: Deregulation of markets is worth the trade-offs because it results in long-run growth of an economy.
2. Agree or disagree: The U.S.at this time should make policy that will stimulate supply-side, long-run growth instead of demand-driven short-run growth.
3. Agree or disagree: "Tax reform [cuts] will do very little for economic growth and will push inflation dangerously higher ." (Alan Greenspan)

- Analyze real-life economic booms/busts using the AD-AS model

- Research for the big debate tomorrow

Key Concepts:

- Macroeconomic Equilibrium

- Shifters of AD/AS (supply shocks/fiscal/monetary policy)

- LR vs SR equilibrium

Featured Sources:

CNBC article ( with Alan Greenspan): https://www.cnbc.com/2017/12/06/greenspan-tax-reform-will-do-very-little-for-growth-inflation-is-biggest-danger.html

1.17.2018

Challenge Questions:

1. Is the U.S. economy in in a growth or recession period? Explain using an AD-AS diagram.
2. One of Trump's economic policies is to stimulate growth by increasing military spending. Illustrate this on the AD-AS diagram.

- Vote on the Ch.24 homework problems you want to review

- Solve homework questions in small groups

- Present homework questions to the class

Key Concepts:

- Macroeconomic Equilibrium

- Shifters of AD/AS (supply shocks/fiscal/monetary policy)

- LR vs SR equilibrium

Featured Sources:

- Hubbard HW Questions, Ch. 24

1.16.2018

Challenge Questions:

1. How is the AD-AS model different from the micro-level supply and demand model?
2. To what extent is the AD-AS model reflective of real-life? Explain.

- Explain in writing where the AD, AS, LRAS curves come from.

- Demonstrate shifts in the AD-AS curve given hypothetical scenarios.

Key Concepts:

- Macroeconomic Equilibrium

Featured Sources:

A summary of the AD-AS model:

1.12.2018

Big Debate Day!

• Should U.S. economic policies encourage more savings (Hayek) or more consumption (Keynes) to boost economic growth?

• Participate in debate, either verbally or in writing on whiteboards
• Turn in your written prep. at end of debate

1.11.2018

Challenge Questions:

1. Agree or Disagree: “U.S. economic policies should encourage more savings (Hayek) than consumption (Keynes) to boost economic growth.” Explain.
2. Whose economic policies are best for encouraging economic growth: Hayek or Keynes? Explain why.

• Write responses to CQs and discuss
• Finish reviewing Chapter 23 homework questions: 3.12 ; 4.1 ; 4.3 ; 23A.4
• Prepare for tomorrow's big debate
• Write your "Written Prep. for Debate" that includes:
• "Opening Statement" (lead-in, thesis statement, and introduce main arguments)
• One C --> EV --> +R paragraph (using credible source and citied in MLA format)

Key Concepts:

• Austrian Economics (Hayek) v. Keynesian Economics

Featured Sources:

• Infographic: Hayek v. Keynes (handout)

1.10.2018

Challenge Question:

1. Should the U.S. government give every adult, working and non-working, universal basic income or U.B.I. like Finland,

Switzerland, the Netherlands, and Canada are proposing to do (would be about \$870 per month to every adult)? Why or why not?

2. If the U.S. implemented a U.B.I., would this increase savings more or consumption more? Explain your viewpoint.

• Vote on the Chapter 22 and Chapter 23 homework questions you want to review.
• Write response to CQs and discuss.

Featured Sources:

1.9.2018

Challenge Questions:

1. Agree or Disagree: President Trump is pursuing economic policies that will lead to long run economic growth in the U.S. Explain your viewpoint.
2. Agree or Disagree: “U.S. economic policies should encourage more savings than consumption to boost economic growth.” Explain your viewpoint.

• Write responses to CQs and discuss.
• Participate in mini-debates.
• Annotate article from Forbes magazine
• Identify evidence to support viewpoints

Key Concepts:

• from Chapters 22 and 23

Featured Sources:

1.8.2018

Challenge Questions:

1. What factors do you think contribute significantly to the long run economic growth of countries? List and explain why.
2. How much influence do Presidents have over the economic growth of the U.S.? Explain.
3. How did the growth of the U.S. economy during President Trump's first year compare to the first year of other U.S. Presidents?

• Write responses to CQs and discuss
• Identify key concepts in Chapters 22 and 23 for this week
• Participate in mini-debates on topics for this week

Key Concepts:

• from Chapters 22 and 23

Featured Sources:

12.22.2017

Big Debate Day:

• Who should be trusted more to steer the U.S. economy for the benefit of society: the U.S. government or U.S. businesses?

• Write your "Written Prep. for Debate" that includes:
• "Opening Statement" (lead-in, thesis statement, and introduce main arguments)
• One C --> EV --> +R paragraph (using credible source and citied in MLA format)
• Participate in debate, either verbally or in writing
• (Dunbar: pass back all papers...)

12.21.2017

Challenge Questions:

• How does the U.S. Government pay for all government spending (G) when it cuts taxes (T)? Explain the process.
• What was specifically in the GOP Tax Bill that was passed by the U.S. Congress yesterday?

• Write responses to CQs and discuss.
• Tests passed back to keep
• Finish reviewing Chapter 21 homework Qs (2.10-2.15) Also play "Macro Follies" video clip
• Prep. for tomorrow's big debate!
• Who should be trusted more to steer the U.S. economy for the benefit of society: the U.S. government or U.S. businesses?

12.20.2017

Challenge Question:

• This morning the U.S. Congress will vote to approve the largest tax break legislation in a generation.

How might this lead to purchases being MORE expensive for lower and middle income Americans? Explain.

• Vote on the Chapter 21 homework questions you want to review.
• Write response to CQ and discuss.
• Compare and contrast the macroeconomic theories of Keynes and Hayak.
• Begin prep. for this Friday's big debate (if time permits).

Key Concepts:

• all in Chapter 21

Featured Sources:

12.19.2017

*** Chapter 21 Cornell Notes & Problems due tomorrow (Wednesday) ***

Challenge Question:

• Who should be trusted more to steer the U.S. economy for the benefit of society: the U.S. government or U.S. businesses?

(i.e. is "laissez-faire" best?) Explain your viewpoint.

• Write response to CQ and discuss
• Identify key concepts in Chapter 21: Economic Growth, the Financial System, and Business Cycles
• Compare and contrast the major "Macroeconomic Schools of Thought"

Key Concepts:

• Long-run economic growth
• Potential GDP
• Market for loanable funds
• "crowding out"
• Keynes v. Hayak

Featured Sources:

12.18.2017

• Test: Chapters 1, 2, 3, 8, 19, 20

12.15.2017

Big Debate Day:

• Should the federal government raise the minimum wage to \$15/hour, keep it at \$7.25/hour, or abolish it entirely?

• Participate in debate
• Turn in "Written Prep. for Debate" at end of the debate

12.14.2017

• Review and practice problems for Test (on Monday)
• Discuss Opening Statements by economists in debate: Abolish the Minimum Wage?

12.13.2017

Challenge Questions:

• Do you think the official unemployment rate is a valid statistic? Does it have any flaws in how it's calculated?

Are there any changes you would make in HOW it's calculated? Explain.

• Write responses to CQs and discuss
• VOTE (on the board) on the Chapter 20 homework questions you want to review

Key Concepts:

• all formulas from Chapter 20

Featured Sources:

• N/A

12.12.2017

Challenge Questions:

1. Should the unemployment insurance system be made more generous in Michigan, from the current 26 weeks max. (and \$362/week max.)

to 52 weeks maximum (and \$500/week max.)? Why or why not?

2. Should the federal government raise the minimum wage to \$15/hour, keep it at \$7.25/hour, or abolish it entirely? Explain your viewpoint.

3. Should the U.S. guarantee a "Universal Basic Income" of \$600/month for all adults age 18 and over like Finland is implementing? Why or why not?

• Write responses to CQs and discuss
• Research and Write your "Written Prep. for Debate" that includes:
• "Opening Statement" (lead-in, thesis statement, and introduce main arguments)
• Three C --> EV --> +R (using three different sources and citing all EVs using MLA format)

Featured Sources:

12.11.2017

Challenge Questions:

1. Last week, President Trump promoted the GOP's tax cut plan saying “these massive tax cuts will be rocket fuel” for the American economy.

Is rapid economic growth always a good thing and are there any trade-offs? Explain.

2. During his election campaign, President Trump frequently described low unemployment numbers as “totally fiction." Is it possible for

economic data to be objective, or is it always a subjective matter of opinion? Explain your viewpoint.

• Write responses to CQs and discuss
• Identify key concepts in Chapter 20

Key Concepts:

• from Chapter 20 in textbook; Hubbard .ppt

Featured Sources:

12.8.2017

• Complete Chapter 20 Cornell Notes and Problems

12.7.2017

Challenge Questions: (debate day)

1. (same as yesterday's): Should economists continue to use GDP as the primary measure of the health, prosperity, and capacity of the U.S. economy,

or should an alternative measure be used such as GPI: Genuine Progress Indicator or HPI: Happy Planet Index be used instead?

2. To what extent is wealth a prerequisite for a healthy and prosperous economy?

Key Concepts:

Review: Chapters 1,2, 3, and 5

Chapter 19

- Define key terms with precision

- Debate the pros and cons of using GDP as a measure of health, prosperity, and capacity.

- Write a paragraph explaining how today's debate relates back to the fundamental economic problem.

Featured Sources:

- Graph of GDP per person vs income inequality: http://static3.businessinsider.com/image/57a8a5dcdb5ce91c008b54e8-689/screen%20shot%202016-08-08%20at%2011.30.32%20am.png

12.6.2017

Challenge Questions:

1. Should economists continue to use GDP as the primary measure of the health, prosperity, and capacity of the U.S. economy,

or should an alternative measure be used such as GPI: Genuine Progress Indicator or HPI: Happy Planet Index be used instead?

• Vote on the Chapter 19 homework questions you want to review (also prep. to turn in today)
• Write "Opening Statement" for tomorrow's big debate on a separate piece of notebook paper

Key Concepts:

• all in Chapter 19

Featured Sources:

12.5.2017

Challenge Questions:

1. In your viewpoint, what should be the most important factors economists should use to measure of the health, prosperity, and capacity of the U.S. economy?

List and explain why.

2. Should economic growth as measured by "Gross Domestic Product" (GDP) continue to be the primary measure used to assess the health of the U.S. economy and guide policy makers? Why or why not?

• Write responses to CQs and discuss
• Identify key concepts in Chapter 19 (homework due tomorrow)
• Consider arguments related to this week's big debate question

Key Concepts:

• Gross domestic product (GDP) formula
• Nominal GDP v. Real GDP
• final goods and services
• alternative measures to GDP (e.g. GPI)

Featured Sources:

12.4.2017

Challenge Questions:

1.) Should our government ban the outsourcing of jobs to other countries by U.S. companies? Explain.

2.) Should the U.S. withdraw from free trade agreements (such as NAFTA, KORUS, and TPP)? Explain.

3.) Does Walmart do more harm than good to U.S. society? Explain.

4.) Should the U.S. ban all imports made with child labor?

(assumptions: relatively safe working conditions; child defined as 14-and-under in age)

- Vote on the Chapter 3 and 8 homework questions you want to review

- Write responses to CQs

- Participate in mini-debates

Key Concepts:

- from Chapters 3 & 8 Cornell Notes

Featured Sources:

N/A

12.1.2017

• Complete pre-test (two parts)
• Review Chapter 2 Problems together
• Also, practice additional problems with Mr. Clifford and Dr. McGlasson
• Participate in mini-debates on topics from Chapters 1 and 2

11.30.2017

Challenge Questions:

1. What is the fundamental economic problem?
2. To what degree is the production possibility frontier a representation of reality?

Key Concepts:

- Economic models

- Production possibility frontier

- Construct paragraph and sentence-long answers to homework questions

- Synthesize knowledge across multiple chapters(opportunity costs, market structure, market failure)

- Relate concepts back to the central economic problem of scarcity

Featured Sources:

Hubbard, Chapters 1-2

11.29.2017

Complete Cornell Notes and Problems for Chapters 1 and 2 in textbook.

Resources:

11.28..2017 --> Please see seating chart on podium for your seat in this class.

Challenge Questions:

1. In your viewpoint, what is the most important goal to achieve in our economy? Explain why.
2. Is efficiency or equity more important to achieve in our economy? Explain why.

- Write and Discuss responses to Challenge Questions (start a notebook for this class ASAP)

- List the keys to success in AP Macroeconomics

- Identify the macro issues in today’s news headlines

- Illustrate the basic layout of “Cornell Notes”

- List the “Cues” that should be used for close reading of textbook

- Construct “Cornell Notes” for one section of Chapter 1: “The Economic Problems that Every Society Must Solve” on pages 7-11

- Participate in mini-debates in class

Key Concepts:

- microeconomics

- macroeconomics

- scarcity

- economic models

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