July 18-21, 2022

Instructor: Margaret Ray

Dr. Margaret Ray is Professor of Economics and Director of the UMW Center for Economic Education at the University of Mary Washington. She was previously an Economist at the Federal Reserve Bank of Richmond. In addition, she is certified to teach K-12 Social Studies and has a Masters of Education degree in Curriculum and Instruction. She also teaches AP Economics for the Center for Talented Youth at Johns Hopkins University. She has been involved with K-12, AP, and college level economics for over 20 years, in a variety of capacities including:

• AP Economics textbook author
• Microeconomics Test Development Committee member
• AP Economics exam reader, table leader, and question leader
• College Board endorsed AP Economics consultant
• Author of the Council for Economic Education’s Advanced Placement Economics Teacher’s Manual and Student Activities Guide for Macroeconomics
• High School AP Economics Instructor
• AP economics test item writer
• AP economics curriculum author
• AP Macroeconomics and Microeconomics course audit Senior Auditor
• AP National Conference Steering Committee member and presenter

Course Description

Course Overview

This workshop will focus on new AP course content and materials provided by the College Board how they can be integrated effectively into AP Economics courses. The content of the AP Economics courses and exams as well as approaches to teaching the course content and preparing students for success on the AP Economics exams will also be emphasized. The workshop will be interactive and cover the topics participants identify as important. Content appropriate for both new and experienced teachers and for microeconomics and macroeconomics will be included based on the needs of participants.

What Will You Learn

Important workshop topics include:

  • Use of the new College Board material for teaching AP economics
  • Review of difficult course topics (as identified by participants)
  • Demonstration of effective pedagogical approaches and class activities
  • Strategies for preparing students for the AP Economics exams

How You Will Benefit

As a result of completing this workshop you will:

  •  Incorporate new College Board content and materials into your AP Economic course(s)
  •  Identify new classroom approaches and activities for teaching AP Economics
  •  Integrate preparation for the AP exam throughout your AP Economics course(s)

Course Agenda Overview

All participants will participate in daily discussions and classroom activity demonstrations. There will be time set aside for best practices, so feel free to bring anything you would like to use to present yours to the group (or plan to simply explain your best practice – no materials required)!

We will begin the institute with a survey to determine the number of teachers who teach micro/macro/both and the mix of new/experienced AP Economics teachers. The survey, along with the content areas identified by participants, will determine the specific schedule for each day. Come ready to identify the topics and questions you would most like to address during the week so the institute can be personalized for those who attend!

Day 1: Introduction

• Participant Survey and introductions (me, participants, this workshop, AP Econ courses)
• Review of new College Board AP Economics materials
• Resources and pacing

Homework: Complete draft syllabus started during class, comparative advantage

Day 2: Basic Economic Concepts

• Go over homework, questions
• Basic economic concepts
• Macro Content

Homework: Supply and demand; FRQ Andersonland

Day 3: Macro/Micro

• Go over homework, questions
• Macro Activities
• Macro Mock Grading
• Micro content

Homework: FRQ (Avocados), Be ready to present a “Best Practice” tomorrow

Day 4: Micro/Exam Preparation

• Go over homework, questions, Best Practices
• Micro activities
• Reviewing and test Prep
• Micro Mock Grading

Homework: prepare for your AP Econ course(s) and let me know if I can help with anything!

Comparative advantage worksheet (provided in class)

“Graph the effect on equilibrium price and quantity in the market for _____SUV’s_____ if there is a change (increase) in ____the price of gasoline____.

Assume the economy of Andersonland is in a long-run equilibrium with full employment. In the short run, nominal wages are fixed.
(a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate
demand. Show each of the following.
(i) Equilibrium output, labeled Y1
(ii) Equilibrium price level, labeled PL1
(b) Assume that there is an increase in exports from Andersonland. On your graph in part (a), show the effect of
higher exports on the equilibrium in the short run, labeling the new equilibrium output and price level Y2
and PL2, respectively.
(c) Based on your answer in part (b), what is the impact of higher exports on real wages in the short run? Explain.
(d) Due to increased exports, export-oriented industries in Andersonland increase expenditures on new container ships/equipment.
(i) What component of aggregate demand will change?
(ii) What is the impact on the long-run aggregate supply? Explain.

Assume the market for avocados is perfectly competitive. The typical firm is earning positive economic profit in the s-r equilibrium.

(a) Draw a correctly labeled graph for the typical firm, illustrating the short-run equilibrium and labeling the equilibrium market price and output PE and QE, respectively.
(b) Assume there is an increase in the market wage rate for labor, a variable input. Show on your graph in part (a) the effect of the wage increase on the marginal cost curve in the short run.
(c) Assume that avocado producers hire workers from a perfectly competitive labor market. Draw a graph of labor supply and demand for the typical firm and label the supply curve MFC and the demand curve MRP. Assume the market wage rate increases from w1 to w2. Show the effect of the wage increase on the graph, labeling the initial quantity of labor hired QL1 and the new quantity of labor hired QL2.


1. Assume that the country of Rankinland is currently in recession.
(a) Assume that Rankinland produces only food and clothing. Draw a correctly labeled production possibilities curve for Rankinland. Show a point that could represent the current output combination and label it A.
(b) Assume that the Central Bank of Rankinland pursues an expansionary monetary policy.
(i) Identify the open-market operation that the Central Bank would use.
(ii) Draw a correctly labeled money market graph and show the short-run effect of the expansionary monetary policy on the nominal interest rate.
(iii) Assuming no change to the price level, what happens to the real interest rate as a result of the expansionary monetary policy? Explain.
(iv) Given your answer to part (b)(iii) regarding the real interest rate, what happens to the real gross domestic product (GDP) in the short run? Explain.
(c) Suppose Rankinland has a current account deficit. Rankinland’s currency is called the bera.
(i) What will initially happen to the current account deficit in Rankinland solely due to the change in the real GDP from part (b)(iv) ? Explain.
(ii) What will happen to the international value of the bera solely due to the change in the real GDP from part (b)(iv) ? Explain.