AP Macro – 2/14/2020

I.  Bellwork

P311 – MC 1-5

II.  Objectives

  • Examine how recessions and inflation impact the deficit
  • Determine the fiscal policy consistent with counteracting recessionary and inflationary gaps
  • Analyze how government debt impacts the economy
  • Identify how the Federal Reserve uses monetary policy as a means to achieve macroeconomic goals
  • Construct a flow map describing the various monetary policies used by the Fed and their impact on the money supply.

III.  Discussion/Notes

Macro 4.1- Money Market and FED Tools (Monetary Policy)

Money Growth and Inflation- Macro Topic 5.3

Money Growth and Inflation- Macro Topic 5.3

§  Recession & Inflation Impact on Deficit 

§  Fiscal Policy – Impact of the Deficit – 

§  Impact of Borrowing

§  Monetary Supply Graph – p305

§  Impact of Expansionary & Contractionary Monetary Policy – p307

§  Taylor rule v. Inflationary Targeting

IV.  Materials/Videos:

Monetary Policy

Monetary Policy Flash Cards

(Macro) Episode 30: Creating Money

Monetary Policy Graphs (1 of 2) – Macro 4.6

V. Classwork

The Money Multiplier

Money Multiplier Practice (OLD)

§  Reserve-Requirement-WS

V.  Module 31 & 32 Questions on iLearn

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