1. L2 P 147 bullets 3,4,5 Measuring national Income Output method Income Method Expenditure method GDP GNP Nominal and real GNP GDP Per Capita CIA, wealthiest, poorest. How do you measaure it?

2. L3 Measuring Development bullet 1 P 158 Read the economist, circular flow Limitations of measurement Inaccuracies Unrecorded activity Externality—we are killing ourselves with pollution Quality of life Composition of output Growth Vs Development \

3. L4 Measuring Development bullet 2,3 P 158 HDI Gender HPI Ginni and Lorenz Other CIA, wealthiest, poorest. How do you measure it?

4. L5 Macro Activity Real Unemployment ACTIVITY 1 Group 1 Terms Group 2 Diagram Group 3 Assessment advice- write 4 SR questions ACTIVITY 2 Use geography text book as a prompt, write a question

5. Aggregate demand Bullets 3,4, p 169 HW SR 2 P 177 Warm up, so far we learned…… 15 sec. Difference between Micro and macro What causes change in investments? P 174 Govt Policies P 175 Good Bad p 344

6. Cause of change Cause Interest rates National Income TechnologyExpectations

7. Govt Policies Policies FiscalMonetary

8. Macro Equilibrium P 186 bullets 1,2 Warm Up News Diagrams LRAS Keynes Work on SR 1 P 200, complete sheet. Put in folder HW Reading P 189-191

9. Things to remember Short run is when AS and AD meet, Simple In the long run, EQ level of output can occur at different levels Long run EQ can exist with out full employment- The economy has spare capacity AD can increase (Keynes) without inflation—to a point…

10. Neo Classical Equilibrium P189-191 Warm Up– Income gap in the news Diagrams/ Things to remember Reading in class 181-191 Good Bad- What can be found in it. Folders for class work- SR 3 P 200 to be collected

11. Things to remember Short Run EQ is the same for Keynes and Neo Classical For Keynes Long run EQ can happen at any point. (below full employment) For Neo Classical Long run EQ happens AT full employment For Neo, any increase in demand increases price For Neo Classical the economy will always AUTOMATICALLY move to Equilibrium For Keynesian the economy may stall in the long run without interference from the government

12. Changes in supply and business cycle P191-194 P200 essay part B Keynes Impact depends on initial equilibrium Govt’s must intervene below full employment Neo Classical Increase in supply has a positive influence, more and lower prices and growth Intervention = inflation. Increase in supply brings growth AND development

13. Business Recession is 2 straight quarters of CONTRACTION. Negative growth Recessions end with recovery Boom Recession WHY? May be linked to politics? Usually 3-5 year cycles

14. Accelerator P 198-199 Set up folder- Glue Criteria in. Put Work in Look at check list, is it all there? Put current work in SR4 200 Read Accelerator- Look at TOK HW SR 5 P 200

15. Consolidation Ch 14-18 Submit HW to Folder. Check the check list upi to now. Groups, Ch 14, 15, 16, 17, 18 5 minute review, then report back, 2 important things. GOOD BAD P 384 fiscal policy in the US 395 Nokia A Little Depth P 395