1. AD/AS and
Fiscal Policy

2. 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

3. Review Circles
Odd numbers
Even Numbers 3

4. 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