## Unit Five: Inflation, Unemployment, & Stabilization Policies

1. Discussed long-run monetary policy concepts such as Okun's Law and jobless recoveries. Assignments: read pp. 780-789; Answer and Look #2 (p. 782), and #1, 2 (p.789); and Activities 5-3, 5-4, and 5-5 all due Tuesday. [4/3]

2. 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; read pp. 793-802; Answer and Look #1 and 2, p. 800; Activities 5-8 (Short Run Phillips Curve) and 5-9 (Long Run Phillips Curve) both due Wednesday. [4/4]

3. Went over Unit 4 exam. Distributed Unit 5 Exam Review. Assignments: Read pp. 803-811; Answer and Look #1 (p. 806) and #1 (p. 809); Answer #6 & 9 (pp.813-815). [4/5]

4. 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, and the Fisher effect. Also discussed the difference between expected and unexpected inflation, and who is harmed or helped by unexpected inflation. [4/6]

5. Work day and review for exam. [4/7 and 4/17]

6. Unit 5 exam. Late homework due by 4PM. Assignments: Read pp. 586-598; Answer and Look #1 and 2 (p. 591), #1 & 2 (p.598). [4/18]

2. 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; read pp. 793-802; Answer and Look #1 and 2, p. 800; Activities 5-8 (Short Run Phillips Curve) and 5-9 (Long Run Phillips Curve) both due Wednesday. [4/4]

3. Went over Unit 4 exam. Distributed Unit 5 Exam Review. Assignments: Read pp. 803-811; Answer and Look #1 (p. 806) and #1 (p. 809); Answer #6 & 9 (pp.813-815). [4/5]

4. 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, and the Fisher effect. Also discussed the difference between expected and unexpected inflation, and who is harmed or helped by unexpected inflation. [4/6]

5. Work day and review for exam. [4/7 and 4/17]

6. Unit 5 exam. Late homework due by 4PM. Assignments: Read pp. 586-598; Answer and Look #1 and 2 (p. 591), #1 & 2 (p.598). [4/18]