AP Economics – 2/26/19

I.  Bellwork

• Pages 351-352 1-5 MC

II.  Objective:

• Explain the differences between classical macroeconomics, Keynesian, macroeconomics, and Monetarism regarding macroeconomic policy
• List and Describe the elements of modern macroeconomic consensus

III.  Consensus and Conflict in Modern Macroeconomics Pgs. 353-357

A. The Modern Consensus

1. Is Expansionary Monetary Policy Helpful in Fighting Recessions?
2. Is Expansionary Fiscal Policy Effective in Fighting Recessions?
3. Can Monetary and/or Fiscal Policy Reduce Unemployment in the Long Run?
4. Should Fiscal Policy Be Used in a Discretionary Way?
5. Should Monetary Policy Be Used in a Discretionary Way?

• Central Bank Targets
• Asset Prices
• Unconventional Monetary Policies

IV.   Classwork.

A.  For each of the 5 headings (questions) listed above, explain the stance taken by:

1. classical macroeconomics.
2. keynesian, macroeconomics,
3. Monetarism
4. Explain what is the modern consensus.

B.   Questions on iLearn Module 34 & 35

 

AP Economics