AP Economics – 2/25/19

I.  Bellwork

Page 339 – Check Your Understand 1-3 Q&A

II.  Objectives:

• Explain why classical macroeconomics wasn’t adequate for the problems posed by the Great Depression
• Discuss how Keynes and the experience of the Great Depression legitimized macroeconomic policy activism
• Define monetarism and identify its views on the limits of discretionary monetary policy

III.  Discussion:

A Classical Macroeconomics

1. Money and the Price Level
2. The Business Cycle
3. The Great Depression and the Keynesian Revolution
4. Keynes’ Theory
5. Policy to Fight Recessions

IV.  Notebook – Copy and Label

• Figure 31.1 Classical v. Keynesian
• Figure 35.2 Fiscal with a Fixed Money Supply

V.  Videos:

Classical (Monetarist) vs. Keynesian views of Macroeconomics        Keynesian Economics with Jacob Clifford               

• Macro: Unit 2.6 — Classical v. Keynesian Theories            

• • Macro 3.8- Classical vs. Keynesian Aggregate Supply- Macroeconomics

• Macro: Unit 2.6 — Classical v. Keynesian Theories               

VI.  Homework/Classwork:

• Module 35  Vocabulary 13 words (in bold)  Define and provide an example/application for each
• 3.4- Classical vs. Keynesian Economics (See video Macro 3.8 above)
• Worksheet 35.1: Quantity Theory of Money

AP Economics