AP ECONOMICS: March 20 Warm-up: Using three separate AD-AS-LRAS graphs, show the economy at full employment and then going: 1) into a recession due to a decrease in AD and then self-correcting; 2) into a recession due to decrease in AS and then self correcting; 3) beyond full employment due to an increase in AD and then self-correcting. A.P. Economics Learning Target #1 In order to understand the how public policy impacts the economy, I will learn how fiscal policy impacts interest rates. I will know I have it when I can explain how changes in interest rates leading to the crowding out and net export effects. --the connections: recession expansionary policy G borrowing MD increases nominal interest rate (i) increases interest-sensitive C & I diluted U.S. financial assets attractive D for the USD increases USD appreciates U.S exports fall and U.S. imports rise net exports diluted Assignment: (BRING YOUR TEXTBOOKS TO CLASS TOMORROW) --Why is it Money? (Worksheet 23.4—HO); All About Money (Worksheet 23.5—HO); Money Summary (HO); read Module 26; watch Clifford videos