1. AP ECONOMICS: February 28
--Fiscal Policy Quiz (HO) A.P. Economics Learning Target
In order to understand how equilibrium national output and price level are determined, I will analyze the impact of the multiplier effect. I will know I have it when I can: (1) explain how an initial change in spending leads to many additional rounds of spending; (2) calculate the spending and taxation/transfer multipliers; and (3) calculate the amount that the government must change its taxation/transfers or spending to help the economy reach full employment by taking the multiplier effect into account.
Introduction to the Multiplier -Marginal Propensity to Consume (MPC) -Marginal Propensity to Save (MPS) -MPC + MPS = 1
The Multiplier Effect (through 3:40)
-Spending Multiplier (1/MPS); -Taxation and Transfer Multipliers (MPC/MPS) (always 1 less than the spending multiplier)
--Multiplier practice: Begin Worksheet 21.1 (HO) Assignment
Make sure you have completed all of your Unit 3 GC assignments
Wed., March 6th: FRQ #5 (mainly over Key Concepts HO) Thur., March 7th : MCT #3
Fri. March 8th: Notebook turn in