2008 B #1 aggregate supply/aggregate demand, fiscal policy, loanable funds market (crowding out), Foreign Exchange #2 Foreign Exchange, aggregate demand #3 GDP, deflator, inflation, real versus nominal wages, unanticipated inflation 2008 #1 Phillips Curve, Spending Multiplier, Tax Multiplier, loanable funds market, Economic Growth #2 Current Acct vs Capital Acct, Foreign Exchange #3 Absolute/Comparative Advantage 2009 B #1 aggregate supply/aggregate demand, Phillips Curve #2 Money Multiplier, money market, Inflation Helped/Hurt #3 Foreign Exchange, loanable funds market 2009 #1 Phillips Curve, r=i-pie, Monetary Policy, money market, aggregate demand #2 Foreign Exchange, lf market, Economic Growth #3 Money Multiplier, Monetary Policy 2010 #1 asad, u, lf mkt, growth/investment #2 money mkt, bonds, asad, fed/omops #3 forex, asad, current account 2010 B #1 asad, Phillips curve, lf mkt, ppc #2 omops, money mkt, lf mkt, forex #3 asad/forex 2011 #1 asad, Phillips curve, fipo, omops, mopo, money mkt, #2 forex, lf mkt #3 t-charts, reserve ratio, money multiplier, bonds, M B #1 asad, Phillips curves, lf mkt #2 forex, asad, U, omops #3 calculating inflation, gdp, rgdp, real wage calculate, inflation win/lose

Test Info Replicates AP format/grading Cumulative (15% old, 85% Section 4) Multiple choice Thursday – 70 minutes/60 questions – 2/3 of final grade FRQ Friday – 3 Questions, 1 long, 2 short – 10 minute planning, 50 minute writing – 1/3 of final grade

Additions to Notes/Reminders Dissaving Fiscal policy Monetary policy Other ways to indicate PL change (GDP deflator) About RGDP – Output – Income, National income – Direct relationship w employment – Inverse relationship w unemployment

SRAS/AD Review Why they slope the way they do.

New Call and Response Call: Wages are? Response: Sticky!

SRAS shifters Input costs – Commodities – Wages Productivity Business Taxes – (also shift Aggregate Demand)

Modules 19,20 Macroeconomic Equilibrium

HW due tomorrow HW: pg. 217 #4,7,13a-c

Shifters. Which curve shifts? Which way? Interest rates rise. CPI expected to rise next month. Price of oil falls. Incomes rise. Wages fall. Business taxes fall. Money supply increases.

SRAS/AD Shifters. Which curve shifts? Which way? Consumer confidence in economy falls. Labor productivity rises. Property values fall. Stock market indexes (S&P500, Dow-Jones) rise. Price of cotton rises. Income tax rates fall.

AS Quiz 5 Questions

Which of the following would cause the short-run aggregate supply curve to shift to the right? (A) A decrease in the wage rate (B) An increase in the interest rate (C) An increase in the natural rate of unemployment (D) A decrease in the capital stock (E) An increase in the expected price level

An increase in labor productivity will most likely cause aggregate demand and aggregate supply to change in which of the following ways in the short run? Aggregate Demand Aggregate Supply (A) Not change Decrease (B) Not change Increase (C) Decrease Not change (D) Decrease Increase (E) Increase Not change

A decrease in business taxes would tend to: a. increase aggregate demand and decrease aggregate supply b. increase aggregate demand and increase aggregate supply c. decrease aggregate demand and increase aggregate supply d. decrease aggregate demand and decrease aggregate supply

An increase in the price of oil will shift the (A) aggregate demand curve to the right (B) aggregate demand curve to the left (C) long-run aggregate supply curve to the right (D) short-run aggregate supply curve to the right (E) short-run aggregate supply curve to the left

Which of the following would be considered to be one of the factors that shift the aggregate demand curve? A change in: a. business spending on final goods b. wages c. domestic resource availability d. the price of steel

Partners FRQ Practice Whoever knows it best should do the scratch work. Whoever’s struggling should write down the answers on the paper to be turned in.

2 nd Seating Chart 3 (Front of Class) RachaelScottShelby Smith Paperw. HannahZach P.Heather Zach S. Bathroom JoshuaDavidWilliamJuhiAmanda Attendanc Shelby Stephens EmilyGarrett Boss AddieDanielle windowwindow

Seating Chart 4th (Front of Class) RachaelSierra Attndnc. SarahCoraCharlesKristen Brandon Bathroom RyanAnmolKyleJordanWill Boss Andrew CierraDylanCourtney J. MaciHunterGabrielleAlex H. Tanner Paperw. HannahAlex B.EmmaCody G. BrettAdamCliffMichael D. NicoleDanielle J.Cody J.Michael E. windowwindow

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M20 Notes

Short-run equilibrium PL RGDP SRAS AD

Short-run equilibrium Two ways recessions happen Two ways inflation happens Stagflation Fiscal policy Monetary policy

Which curve shifts? Which way? Effect on PL/RGDP? Interest rates fall. Inflation expected to fall next month. Price of steel rises. Incomes fall. Wages rise. Business taxes rise. Money supply falls.

Which curve shifts? Which way? Effect on PL/RGDP? Consumer confidence in economy rises. Labor productivity falls. Property values rise. Stock market crash. Price of cotton falls. Income tax rates rise.

5 Minute FRQ Drill Take out a sheet of paper. Independent

Swap/Grade

Happy Tuesday

HW Collect

AS/AD Handout Review

Long-run aggregate supply PL RGDP

LRAS is vertical because wages are __________ in the long-run.

LRAS And PPF And Business Cycle And Natural Rate of Unemployment And Full Employment

LRAS and other graphs.

LRAS shifters When LRAS shifts right, this is called: What causes ec. growth? – Amount of _________ - – Quality of _________ (i.e. education) – T____________

3 Ways to Show Economic Growth PPF Business CycleLRAS

SRAS or LRAS??? Which way??? Cost of oil rises Technology increase Hurricane destroys factories along coast Labor productivity falls Population decline Education spending increases Business taxes fall

Long-run Equilibrium PL RGDP

Inflationary Gap & Recessionary Gap 3 ways to show each

Recessionary Gap PL RGDP

Inflationary Gap PL RGDP

Returning to Long-Run Equilibrium From recessionary gap From inflationary gap -With help from government, federal reserve, and father time.

AS/AD/LRAS and unemployment/ natural rate of unemployment/ full employment

Fool or be fooled! Recessionary/Inflationary gap candy challenge.

Keynesian Aggregate Supply Curve Or, 1 more way to look at Aggregate Supply

Keynesian aggregate supply curve PL RGDP AS

Partners FRQ Practice Whoever knows it best should do the scratch work. Whoever’s struggling should write down the answers on the paper to be turned in.

Seating Chart 4th (Front of Class) RachaelSierra Attndnc. SarahCoraCharlesKristen Brandon Bathroom RyanAnmolKyleJordanWill Boss Andrew CierraDylanCourtney J. MaciHunterGabrielleAlex H. Tanner Paperw. HannahAlex B.EmmaCody G. BrettAdamCliffMichael D. NicoleDanielle J.Cody J.Michael E. windowwindow

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Happy Wednesday Pixies Day

Recessionary Gap Proper Fiscal Response #1: #2: Proper Monetary Response #1: #2: No Response Only one:

Inflationary Gap Proper Fiscal Response #1: #2: Proper Monetary Response #1: #2: No Response Only one:

Choose one of each: Starting scenario – Inflationary gap – Recessionary gap – Long-run equilibrium Appropriate response/Ultimate result – Fiscal policy – Monetary policy – No government action Challenger may ask up to 3 questions, which may require the person challenged to draw a graph/shift a curve. Any error in response or drawing wins candy for challenger. No errors wins candy for challenged.

Long-run Equilibrium PL RGDP

ACDC Econ LRAS/AS/AD

FRQ Drill 5 Minutes, Independent

Partners FRQ Practice Whoever knows it best should do the scratch work. Whoever’s struggling should write down the answers on the paper to be turned in.

Quiz 15 Questions Multiple Choice—16 Minutes 1 abbreviated FRQ: #1 a,b,d,f only 25 Minutes