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

• 19.1 WS on iLearn
• Aggregate Demand and Supply Practice
• 19.2 WS on iLearn

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

2. The Government Budget and Total Spending
3. Expansionary and Contractionary Fiscal Policy
4. 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

AP Macro W2020