AP Economics – 3/07/19

I.  Bellwork

• A.  Construct a productivity curve.  Demonstrate what would happen as a result of an increase in technology.
• B.  Construct a productivity curve.  Demonstrate what would happen as a result of a destructive civil war
• C.  Construct a productivity curve.  Demonstrate what would happen as a result of an decrease in investment (savings).

II.  Objectives:

• Model the effects of economic growth policies
• Demonstrate and explain how long-run economic growth is represented in macroeconomic models

III.  Notebook/Discussion Growth in Macroeconomic Models pgs 395-400

A.  PPC graph operating at productive efficiency.  Explain

• Add a point that is unattainable to your PPC.
• Add a point repenting inefficiency.

B.  AD-AS Graph at 1ong run equilibrium.  Explain Yp

• AD-AS Graph demonstrating a inflationary gap – Explain what will happen in the long run
• AD-AS Graph demonstrating a recessionary gap – Explain what will happen in the long run

C.  Shift of the LARS curve p399 Causes

• AD-AS Graph if interest rates fall and investment increases

IV. Test Monday

V.  Classwork

• 40.1 WS
• Module 40 Questions

AP Economics