AD/AS and Fiscal Policy

Activity: Review Circles You will be given one key concept to focus on. You must understand it well enough to quiz and help others remember it. You must able to answer people’s questions and give clear examples. DON’T TEACH!!!!!!!!!! QUIZ your partners. Make them work to remember the concept. 2

Review Circles Odd numbers Even Numbers 3

List the 25 Concepts we have covered Aggregate Demand Real Balance Effect Interest Rate Effect Foreign Trade Effect Shifters of AD (C,I,G,X) Aggregate Supply Shifter of AS (R.A.P.) Short Run AS Long Run AS Two Types of Inflation Ratchet Effect Classic vs. Keynesian Three Ranges of AS 14. Fiscal Policy 15. Discretionary vs. Non-Discretionary 16. Expansionary Policy 17. Contractionary Policy 18. The Car Analogy 19. Multiplier Effect 20. Calculating the Spending Multiplier 21. MPC and MPS 22. Deficit Spending 23. Timing Problems 24. Crowding-Out Effect 25. Net Exports Effect