AP Economics – 3/28/19
I. Bellwork
- 16.3 WS on Ilearn 1-3 Q&A
II. Objectives:
- Describe the multiplier process by which initial changes in spending lead to further changes in spending
- Use the consumption function to show how current disposable income affects consumer spending
- Explain how expected future income and aggregate wealth affect consumer spending
- Identify the determinants of investment spending
- Explain why investment spending is considered a leading indicator of the future state of the economy
III. Income & Expenditure pages 159-169
B.Shifts of the Aggregate Consumption Function C= a + MPC × Yd
- Changes in Expected Future Disposable Income
- Changes in Aggregate Wealth
C. Investment Spending
- The Interest Rate and Investment Spending
- Expected Future Real GDP, Production Capacity, and Investment Spending
D. Inventories & Unplanned Investment Spending pg 169 – Thinking Map (Positive and Negative Planned Inventory)
IV. Classwork
- Macro 3.1 Practice
-
Macro 3.1- Aggregate Demand Practice
- Module 16 iLearn Part A Questions
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