AP Economics – 5/04-5/08

Meetings will return to Big Blue Button – i have been told it’s fixed

2nd Period AP Econ – 12:00 – 12:30 pm Tues & Thursday

Work for Wednesday and Friday is below:

II.  Objectives

  • Explain the difference between short-run and long-run macroeconomic equilibrium
  • Describe the causes and effects of demand shocks and supply shocks
  • Determine if an economy is experiencing a recessionary or an inflationary gap and explain how to calculate the size of an output gap

III.  Discuss Video Assignment on iLearn

IV.   Equilibrium in the Aggregate Demand/Supply Model pgs 192-199

V. Notebook

  A.  Bridge Map  P194

  • Impact of Negative Demand Shocks
  • Impact of Positive Demand Shocks

B.  Bridge Map  P195

  • Impact of Negative Supply Shocks
  • Impact of Positive Supply Shocks

C.   Discuss stagflation

D.  Copy and Label Figure 19.4 p 196

E.  Short Run to Long Run

  • Impact of Recessionary Gap
  • Impact of Inflationary Gap

Macro 3.3- Long Run Aggregate Supply, Recession, and Inflation (LRAS)

VI.  Classwork DUE WEDNESDAY

II.  Objectives

  • Discuss how the AS–AD model is used to formulate macroeconomic policy
  • Explain the rationale for stabilization policy
  • Describe the importance of fiscal policy as a tool for managing economic fluctuations
  • Identify the policies that constitute expansionary fiscal policy and those that constitute contractionary fiscal policy

III. Economic Policy Aggregate Demand & Supply Model pgs 201-208

A Macroeconomic Policy

  1. Policy in the Face of Demand Shocks – Examples
  2. Responding to Supply Shocks – Difficult and only resolves one on the issues

B.  Fiscal Policy: The Basics

  1. Taxes, Purchases of Goods and Services, Government Transfers, and Borrowing
  • Explain in terms of Expansionary & Contractionary Policy
  1. The Government Budget and Total Spending
  2. Expansionary and Contractionary Fiscal Policy
  3. A Cautionary Note: Lags in Fiscal Policy
  • Major Lags -Recognition, Decision, & Implementation

iV,  Read Exam Tip on Page 207

V.  Classwork

  • 20.5 WS on iLearn – Due Friday

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