AP MACRO – 2/13/2020

I Bellwork 

 Summarize the article below in 6-8 sentences.

https://www.newsweek.com/trump-tax-cuts-deficit-debt-22-trillion-1331623

II. Objectives

  • Describe how the Federal Reserve implements monetary policy moving the interest rate to affect aggregate output
  • Explain why monetary policy is the main tool for stabilizing the economy

III.  Monetary Policy and the Interest Rate – Pages 304-310

IV. Monetary Policy and Aggregate Demand

A. Expansionary and Contractionary Monetary Policy

V. Monetary Policy in Practice

A.  Inflation Targeting

VI.  Classwork on iLearn

31.1 & 31.2


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