It is typical to see economic activity pick-up around the holidays or harvests. For example, every year, the Chinese and some other East Asian cultures celebrate Spring Festival or what is known as “Chinese New Year”.  People travel to their home village, buy gifts and celebrate with elaborate family meals. Consumption rises before and falls after the festivities are over. Economic fluctuations due to seasonal demand factors are one thing, but modern economies experience ups-and downs for a host of reasons including shocks such as droughts or economic crises. One of the main reasons for economic downturns is the breakdown in some aspect of the economic mechanism. In this section, students will be introduced to the basic definition of a business cycle, learn how to define the different phases of the cycle, and explain the different mechanisms that give rise to recessions.

The learning objectives below refer to the typical goals one would have for an introduction to macroeconomics.  Most economists consider the discipline as “a way of thinking”. The key question we answer is “how we make choices under scarcity”. However, we encourage you to consider other alternative ways to conceptualize and teach economics or even introduce pluralistic ideas into your course. For example, the CORE Economics project describes economics as, “The study of how people interact with each other and with their natural surroundings in providing their livelihoods, and how this changes over time.” The “economy is part of society, which in turn is part of the biosphere.” (Chapter 1.11). More importantly, many of the factors and commodities that give us economic growth are socially (re)produced and uncompensated. Consider alternative conceptualizations of the macroeconomy such as the one proposed in UNDP (2012): Gender and Economic Policy Management Intitiave, page 30 outlined in the figure above. The supplemental content is an excellent place to find videos to enliven your classes. Listed alternative resources can be used to familiarize yourself with material that goes beyond the standard treatment.

Looks at fiscal policy as a means to address problems in the macroeconomy. Focuses on government spending as well as taxes and transfers in the Keynesian model, as well as determinants of the level of Aggregate Demand.

Looks at the flow of income in the economy and the calculation of GDP as well as other measures of national income. Discusses shortcomings of and improvements on the various measures.

A study of inflation, its measures, and consequences.  Students will understand how price information is collected and used to construct an index of the price level.  It is important that households and economic agents have a good understanding of the impacts of general price level changes on various economic units.  Policy makers use inflation information to understand the consequences of policy changes and as a guide to current and future policy.

This lesson concerns how economic growth is measured and defined, the benefits of economic growth over time, and the determinants of a nation’s economic growth, including policy. Students will examine the importance of sustained economic growth over time.  Students will understand the meaning and determinants of economic growth. Comparative information and data for different economies over time will be utilized to examine the importance of policy and several factors as economic growth drivers. Students will examine the aggregate production function as a tool to understand the relationship between inputs and aggregate output.  The importance of technological progress will be emphasized. 

This is an introduction to money and its functions.  It explains the role of the central bank in money supply and the money creation process.  Money demand and its determinants are essential to an understanding of equilibrium interest rates, when combined with a discussion of money supply.  An alternative explanation of bond demand and equilibrium interest rates is introduced through a discussion of the bond market. 

The presentation suggested by this topic is not universally used, but is an option. The objectives assume a closed economy with no flow of goods, services, or investment. Availability of quality material using this approach is limited with the OER materials available, and may require additional resource creation in the future.

This is a lesson on the basic economic tools of supply and demand.  Students will use be introduced to the potential results of the interactions of buyers and sellers in a market using basic supply and demand data.  Students will be asked to explore different examples of the use of market information to determine market price and the reasons for changes in market price.

Looks at the measurement and determinants of unemployment in the economy arising from changes in  supply and demand in the labor market. Focuses on the natural rate of unemployment as well as the different types of unemployment.

Principles of Macroeconomics for AP® Courses covers the scope and sequence for a one-semester Advance Placement Macroeconomics course. The book is on the example textbook list for the AP® course here. The text also includes many current examples, including the housing bubble and housing crisis, Zimbabwe’s hyperinflation, global unemployment, and the appointment of the United States’ first female Federal Reserve chair, Janet Yellen.