AP Economics – 2/19/19

I.  Bellwork

  • P311 – MC 1-5

II.  Objectives

  • Examine how recessions and inflation impact the deficit
  • Determine the fiscal policy consistent with counteracting recessionary and inflationary gaps
  • Analyze how government debt impacts the economy
  • Identify how the Federal Reserve uses monetary policy as a means to achieve macroeconomic goals
  • Construct a flow map describing the various monetary policies used by the Fed and their impact on the money supply.

III.  Discussion/Notes

  • Recession & Inflation Impact on Deficit – Bridge Map
  • Fiscal Policy – Impact of the Deficit – Cause & Effect Map
  • Impact of Borrowing
  • Monetary Supply Graph – p305
  • Impact of Expansionary & Contractionary Monetary Policy – bridge map p307
  • Taylor rule v. Inflationary Targeting

IV.  Materials/Videos:
Monetary Policy

Monetary Policy Flash Cards

(Macro) Episode 30: Creating Money

V.  Module 31 & 32 Questions on iLearn


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