Unit Three: National Income and Price Determination
1. Discussed following topics: disposable income, aggregate spending, consumption spending, marginal propensity to consumer/save, and the Multiplier. Assignments: In your notebook answer Checking for Understanding #4 (p. 170), Multiple-Choice #4-5 (p.170), and FRQ #2 (p.171). [3/6]
2. Discussed real interest rates and loanable funds market, investment spending, investment demand, and saving supply. Assignments: read Module 17; answer in your notebook Checking for Understanding #1 (p. 178), Multiple-Choice #1-5 (p. 178), and FRQ #2 (p.179); and complete Activity 3-1 (Intro to Aggregate Demand), which will be due March 18th. [3/7]
3. Discussed aggregate demand, price level, and RGDP; what makes up the AD curve and why it shifts; fiscal policy and monetary policy. Assignments: read Module 18; answer in your notebook Checking for Understanding #1-2 (p. 190), Multiple-Choice #1-5 (p.190), and FRQ #2 (p.191); and complete Activities 3-3 (Intro to SRAS), 3-4 (Sticky v. Flexible Wages), 3-5 (Short-Run Equilibrium), and 3-8 (LRAS), all of which are due March 18th. [3/8]
4. Discussed short-run versus long-run aggregate supply, price level, and RGDP; what makes up the SRAS and LRAS curves, and why they shift; how changes in AD and AS in the short-run affect price levels and outputs, how economies correct themselves, and the concept of sticky versus flexible wages. Assignments: read Module 19; answer in your notebook Checking for Understanding #1 and 2 (p.198), Multiple-Choice #1-5 (p. 198), and FRQ #2 (p.199); and complete Activity 3-6 (Changes in SRAS and AD) and Activity 3-7 (Types of Inflation), which are due March 18th. [3/11]
6. Discussed the differences between supply shocks and demand shocks, cost-push and demand-pull inflation, and inflationary gaps and recessionary gaps. Also discussed how changes in the short-run can eventually lead to changes in LRAS. Took quiz on AD and SRAS. Assignments: read Module 20; answer in your notebook Checking for Understanding #1-3 (p.209), Multiple-choice #1-5 (p. 209), and FRQ #2 (p.210); complete Activities 3-9 (Actual v. Full Employment Output) and 5-1 (Tools of Fiscal Policy), both due on March 18th. Distributed Unit 2 Review Sheet for exam on Monday, March 18th. [3/12]
7. Discussed the creation of macroeconomics as a field of study with the publication of Keynes' The General Theory of Employment, Interest, and Money; expansionary versus contractionary fiscal policy; easy money (expansionary monetary policy) versus tight money (contractionary monetary policy) policies; the effects of the Great Depression on macroeconomics; and the differences between automatic stabilizers and discretionary policies of Congress. Assignments: in your notebook, answer Checking for Understanding #1 and 2 (p. 216), Multiple-Choice #1-5 (p. 216), and FRQ #2 (p. 217); and complete Activities 19 (Keynesian Cross), 26 (Aggregate Planned Expenditures), and Activity 5-2 (Discretionary Fiscal Policy and Automatic Stabilizers), all due on March 15th. [3/13]
8. Took quiz on LRAS. Reviewed the consumption function; discussed the linkages between the aggregate expenditure model, the multiplied effect of a change in aggregate expenditure on RGDP, and the AS-AD model. the Keynesian Cross, and new multipliers (Gov't Purchases, Lump-Sum Taxes, and Transfer Payments Multiplier). [3/14]
9. Went over Unit 2 exam. Reviewed for Unit 3 exam on Monday. [3/15]
10. Took Unit 3 exam (both M/C and FRQ). Assignments: Read Module 22; answer in your notebook Checking for Understanding #2 (p. 231), Multiple-Choice #1-5 (p. 231), and FRQ #2 (p. 231). [3/18]
1. Discussed reading on Aggregate Supply, specifically short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS). Assignments: Read pp. 646-651; Answer and Look #1 (p. 646) and #1 (p.651); Activity 3-3 (Aggregate Supply) and 3-4 (Sticky v. Flexible Wages), due Monday. [2/23]
2. Discussed reading on Aggregate Demand (AD). Assignments: Read pp. 651-654; Answer and Look #1 (p.654); Activity 3-1 (Aggregate Demand), due Tuesday. [2/24]
3. Took quiz on AS and AD. Discussed reading on the Multiplier. Assignments: Read pp. 654-661; Answer and Look #1 (p.661); Answer questions #3, 8, 11, and 14 (pp. 666-667)--due Wednesday; Morton Activity 3-2 (The Multiplier), due Wednesday. [2/27]
No school today, February 28th, due to ACT Exam, juniors only.
4. Discussed the interaction between the Aggregate Demand and the Aggregate Supply curves. Assignments: Read pp. 661-664; Answer and Look #1 (p.664); Act 3-5, Act 3-6, Act 3-8, and Act 3-9--all due Friday. [3/1]
5. Discussion on Macroeconomic Policy. Notes found here. Assignments: Read pp. 669-675; Answer & Look #1 & 2, p. 675; Act. 3-7, due Monday [3/2]
6. Discussion on Consumer Spending (i.e. consumption function and disposable income). Notes found here. Get Unit 3 Review. Assignments: Read pp. 676-680; Answer and Look #1 and 3, p. 680. [3/3]
7. Discussion on Investment Spending (i.e. planned and unplanned investment) and introduction to the Loanable Funds Market. Assignments: Read pp. 680-688; Answer and Look #1 and 2, p. 688; Answer #2, 5, 8, & 10 (pp.688-91)--due Wednesday. [3/6]
8. Discussion on the Keynesian Cross and Aggregate Planned Expenditures. Notes found here. Assignments: Act. 26 (AE v AS-AD) and Act 19 (Keynesian Equilibrium), both due on Thursday. [3/7]
9. Review for Unit Three exam, of which the free-response questions will be on Thursday, and the multiple choice questions given on Friday. [3/8]
10. Unit 3 exam (20 multiple-choice and 2 free-response questions) today and tomorrow. Read pp. 610-615 by Monday. [3/9-10]
11. Free-response portion of unit three test. [3/14]
12. Multiple-choice portion of the unit test given today. All late work due by 4PM today. Read pp. 610-615 by Monday. [3/15]
2. Discussed real interest rates and loanable funds market, investment spending, investment demand, and saving supply. Assignments: read Module 17; answer in your notebook Checking for Understanding #1 (p. 178), Multiple-Choice #1-5 (p. 178), and FRQ #2 (p.179); and complete Activity 3-1 (Intro to Aggregate Demand), which will be due March 18th. [3/7]
3. Discussed aggregate demand, price level, and RGDP; what makes up the AD curve and why it shifts; fiscal policy and monetary policy. Assignments: read Module 18; answer in your notebook Checking for Understanding #1-2 (p. 190), Multiple-Choice #1-5 (p.190), and FRQ #2 (p.191); and complete Activities 3-3 (Intro to SRAS), 3-4 (Sticky v. Flexible Wages), 3-5 (Short-Run Equilibrium), and 3-8 (LRAS), all of which are due March 18th. [3/8]
4. Discussed short-run versus long-run aggregate supply, price level, and RGDP; what makes up the SRAS and LRAS curves, and why they shift; how changes in AD and AS in the short-run affect price levels and outputs, how economies correct themselves, and the concept of sticky versus flexible wages. Assignments: read Module 19; answer in your notebook Checking for Understanding #1 and 2 (p.198), Multiple-Choice #1-5 (p. 198), and FRQ #2 (p.199); and complete Activity 3-6 (Changes in SRAS and AD) and Activity 3-7 (Types of Inflation), which are due March 18th. [3/11]
6. Discussed the differences between supply shocks and demand shocks, cost-push and demand-pull inflation, and inflationary gaps and recessionary gaps. Also discussed how changes in the short-run can eventually lead to changes in LRAS. Took quiz on AD and SRAS. Assignments: read Module 20; answer in your notebook Checking for Understanding #1-3 (p.209), Multiple-choice #1-5 (p. 209), and FRQ #2 (p.210); complete Activities 3-9 (Actual v. Full Employment Output) and 5-1 (Tools of Fiscal Policy), both due on March 18th. Distributed Unit 2 Review Sheet for exam on Monday, March 18th. [3/12]
7. Discussed the creation of macroeconomics as a field of study with the publication of Keynes' The General Theory of Employment, Interest, and Money; expansionary versus contractionary fiscal policy; easy money (expansionary monetary policy) versus tight money (contractionary monetary policy) policies; the effects of the Great Depression on macroeconomics; and the differences between automatic stabilizers and discretionary policies of Congress. Assignments: in your notebook, answer Checking for Understanding #1 and 2 (p. 216), Multiple-Choice #1-5 (p. 216), and FRQ #2 (p. 217); and complete Activities 19 (Keynesian Cross), 26 (Aggregate Planned Expenditures), and Activity 5-2 (Discretionary Fiscal Policy and Automatic Stabilizers), all due on March 15th. [3/13]
8. Took quiz on LRAS. Reviewed the consumption function; discussed the linkages between the aggregate expenditure model, the multiplied effect of a change in aggregate expenditure on RGDP, and the AS-AD model. the Keynesian Cross, and new multipliers (Gov't Purchases, Lump-Sum Taxes, and Transfer Payments Multiplier). [3/14]
9. Went over Unit 2 exam. Reviewed for Unit 3 exam on Monday. [3/15]
10. Took Unit 3 exam (both M/C and FRQ). Assignments: Read Module 22; answer in your notebook Checking for Understanding #2 (p. 231), Multiple-Choice #1-5 (p. 231), and FRQ #2 (p. 231). [3/18]
1. Discussed reading on Aggregate Supply, specifically short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS). Assignments: Read pp. 646-651; Answer and Look #1 (p. 646) and #1 (p.651); Activity 3-3 (Aggregate Supply) and 3-4 (Sticky v. Flexible Wages), due Monday. [2/23]
2. Discussed reading on Aggregate Demand (AD). Assignments: Read pp. 651-654; Answer and Look #1 (p.654); Activity 3-1 (Aggregate Demand), due Tuesday. [2/24]
3. Took quiz on AS and AD. Discussed reading on the Multiplier. Assignments: Read pp. 654-661; Answer and Look #1 (p.661); Answer questions #3, 8, 11, and 14 (pp. 666-667)--due Wednesday; Morton Activity 3-2 (The Multiplier), due Wednesday. [2/27]
No school today, February 28th, due to ACT Exam, juniors only.
4. Discussed the interaction between the Aggregate Demand and the Aggregate Supply curves. Assignments: Read pp. 661-664; Answer and Look #1 (p.664); Act 3-5, Act 3-6, Act 3-8, and Act 3-9--all due Friday. [3/1]
5. Discussion on Macroeconomic Policy. Notes found here. Assignments: Read pp. 669-675; Answer & Look #1 & 2, p. 675; Act. 3-7, due Monday [3/2]
6. Discussion on Consumer Spending (i.e. consumption function and disposable income). Notes found here. Get Unit 3 Review. Assignments: Read pp. 676-680; Answer and Look #1 and 3, p. 680. [3/3]
7. Discussion on Investment Spending (i.e. planned and unplanned investment) and introduction to the Loanable Funds Market. Assignments: Read pp. 680-688; Answer and Look #1 and 2, p. 688; Answer #2, 5, 8, & 10 (pp.688-91)--due Wednesday. [3/6]
8. Discussion on the Keynesian Cross and Aggregate Planned Expenditures. Notes found here. Assignments: Act. 26 (AE v AS-AD) and Act 19 (Keynesian Equilibrium), both due on Thursday. [3/7]
9. Review for Unit Three exam, of which the free-response questions will be on Thursday, and the multiple choice questions given on Friday. [3/8]
10. Unit 3 exam (20 multiple-choice and 2 free-response questions) today and tomorrow. Read pp. 610-615 by Monday. [3/9-10]
11. Free-response portion of unit three test. [3/14]
12. Multiple-choice portion of the unit test given today. All late work due by 4PM today. Read pp. 610-615 by Monday. [3/15]