ECONOMICS: November 8 Warm-up #1: if the economy is experiencing a recession, how would economic policymakers use the fiscal policy.

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ECONOMICS: November 8 Warm-up #1: if the economy is experiencing a recession, how would economic policymakers use the fiscal policy tools? Warm-up #2: see Activity 5-2 (HO from yesterday) & do #6 thru #10 Economics Learning Target In order to understand how the government works to promote the economic goals of full employment, price stability, and economic growth, I will analyze supply-side policy. I will know I have it when I can: (1) list the supply-side policy tools; (2) explain Reaganomics; (3) draw AD-AS graphs illustrating how supply-side policy can remedy stagflation; and (4) understand arguments for and against the theory. Ch. 15, Lesson 2: Supply-Side Policies -supply-side basics; Laffer Curve; origins of modern supply-side management (stagflation of the ’70s) and the depiction of stagflation in the AD-AS graph; Reaganomics; supply-side vs. demand-side depiction of “trickle down” economics; supporters vs. skeptics --Economic Theorists -F.A. Hayek and free market policy (HO—class set) -Keynesianism vs. Austrian School (Hayek) video clip (4:25-9:10) Closure: How do supply-side and demand-side management of the economy compare? (see HO for guidance) Assignment: make sure Ch. 15, Lessons 1-3 have been read