AP Macro – 2/12/2020

I.  Bellwork:  WS 30.3 Q&A

https://www.usnews.com/opinion/articles/2014/01/15/5-reasons-2014-is-looking-good-for-the-us-economy

II Objectives:

  • Explain why governments calculate the cyclically adjusted budget balance
  • Identify problems posed by a large public debt
  • Discuss why implicit liabilities of the government are also a cause for concern

III Discussion Pages 293-302

Deficits & Debts: Crash Course Economics #9

A.  The Budget Balance

1. The Budget Balance as a Measure of Fiscal Policy

SGovernment = T – G – TR

     2.  The Business Cycle and the Cyclically Adjusted Budget Balance

     3.  Should the Budget Be Balanced?

B.  Long-Run Implications of Fiscal Policy

1. Deficits, Surpluses, and Debt

2. Problems Posed by Rising Government Debt

3. Deficits and Debt in Practice

4. Implicit Liabilities

V. Classwork

30.2 WS & 30.4

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