Unit Five: Inflation, Unemployment, & Stabilization Policies
1. Discussed long-run monetary policy concepts such as the budget balance, public debt, debt-to-GDP ratio and how they all are tied into the business cycle. Assignments: read Module 31; answer in notebook Checking for Understanding #1-3 (p. 310), Multiple-Choice #1-5 (p. 311), and FRQ #2 (p. 311). [4/12]
2. Discussed the interaction between monetary policy and inflation in the long-run. Assignments: Read Module 32; answer in notebook Multiple Choice #1-5 (p. 316), and FRQ #2 (p. 317). [4/15]
3. Discussed the long-run effects of monetary policy and monetary neutrality. Assignments: Read Module 33; answer in notebook Multiple-Choice #1-5 (p.326), FRQ #2 (p.327). [4/16]
4. Distributed Unit 5 Exam Review. Discussed the relationship between money, inflation, and disinflation. Introduced easier way to conceive of Okun;s Law (for every one percent drop in unemployment, there is a two-percent increase in real GDP), the Fisher equation (r = i - π), and the Fisher effect. Also discussed the difference between expected and unexpected inflation, and who is harmed or helped by unexpected inflation. Assignments: read Module 34; answer in notebook Checking for Understanding #1-4 (p. 339), Multiple-Choice #1-5 (p.339); complete Activities 5-8 (Short-Run Phillips Curve) and 5-9 (Long-Run Phillips Curve), both due April 22. [4/17]
5. Discussed the interaction between inflation and unemployment in the form of the Short Run Phillips Curve and the Long Run Phillips Curve. Assignments: Read "The Phillips Curve" by Wayne McCaffery, and summarize with a 50-word sentence--due Monday. [4/18]
6. Review for Unit 5 exam on Monday. [4/19]
7. Unit 5 exam. Assignments due by 4PM. Assignments: Read Module 35; answer in notebook Checking for Understanding #1 (p. 351), Multiple-Choice #1 & 4 (pp. 351-52), and FRQ #1 (p. 352). [4/22]
2. Discussed the interaction between monetary policy and inflation in the long-run. Assignments: Read Module 32; answer in notebook Multiple Choice #1-5 (p. 316), and FRQ #2 (p. 317). [4/15]
3. Discussed the long-run effects of monetary policy and monetary neutrality. Assignments: Read Module 33; answer in notebook Multiple-Choice #1-5 (p.326), FRQ #2 (p.327). [4/16]
4. Distributed Unit 5 Exam Review. Discussed the relationship between money, inflation, and disinflation. Introduced easier way to conceive of Okun;s Law (for every one percent drop in unemployment, there is a two-percent increase in real GDP), the Fisher equation (r = i - π), and the Fisher effect. Also discussed the difference between expected and unexpected inflation, and who is harmed or helped by unexpected inflation. Assignments: read Module 34; answer in notebook Checking for Understanding #1-4 (p. 339), Multiple-Choice #1-5 (p.339); complete Activities 5-8 (Short-Run Phillips Curve) and 5-9 (Long-Run Phillips Curve), both due April 22. [4/17]
5. Discussed the interaction between inflation and unemployment in the form of the Short Run Phillips Curve and the Long Run Phillips Curve. Assignments: Read "The Phillips Curve" by Wayne McCaffery, and summarize with a 50-word sentence--due Monday. [4/18]
6. Review for Unit 5 exam on Monday. [4/19]
7. Unit 5 exam. Assignments due by 4PM. Assignments: Read Module 35; answer in notebook Checking for Understanding #1 (p. 351), Multiple-Choice #1 & 4 (pp. 351-52), and FRQ #1 (p. 352). [4/22]