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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