UNIT 4 GUIDE: Welcome to Macroeconomics |
INTRODUCTION COMIC: Understanding Economics |
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MONDAY, MAY 15:
Step 3 Assignment (following both parts of the unit test):What's the Solution to Middle-Class Stagnation? (The Atlantic)
One of the key facts at the center of the film Inequality For All, which we watched in April, was the relatively flat wages of the middle class in the period since the late 1970s. In effect, the middle class is struggling because key areas of life are much more expensive (health care and college come to mind), but middle class workers are not really earning more, after adjusting for inflation. It's been even tougher for the working class, with some jobs paying less, after adjusting for inflation, than they did in the late 1970s. Read as much of The Atlantic's A&Q article (they start with answers, then raise questions about them) titled "What's the Solution to Middle-Class Stagnation?" as you have time to read.
Then click "Messages" on JupiterEd and respond to the "Forum" questions there about the article.
Here's the link to the article: www.theatlantic.com/business/archive/2016/03/whats-the-solution-to-middle-class-stagnation/472194/
Then click "Messages" on JupiterEd and respond to the "Forum" questions there about the article.
Here's the link to the article: www.theatlantic.com/business/archive/2016/03/whats-the-solution-to-middle-class-stagnation/472194/
MACROECONOMICS UNIT TEST ON MONDAY:
Study Guide here!
The "Macroeconomics Unit in a Nutshell" guide below is expanded to include the Business Cycle and some more specifics on monetary policy that will be helpful on the written test on Monday, 5/15.
ALSO: Study the Quizlet sets (use the one without images for practice tests and matching games, etc.)
ALSO: Study the Quizlet sets (use the one without images for practice tests and matching games, etc.)
macroeconomics_unit_in_a_nutshell_v.3.pdf | |
File Size: | 3529 kb |
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7. THURSDAY, APRIL 27: Current Events Semifinals, Quick Quiz and Makeup Tests & Assessments
We will take a Quick Quiz on the Fed and some of the monetary policy basics, and we'll check in the assignment on the Fed from the previous class period (and review certain questions. Then it's the Current Events semifinals (playoffs) for four teams.
NOTE: If you haven't made up a missing test or reading assessment by Thursday, you'll be taking the make up during class (instead of Current Events).
NOTE: If you haven't made up a missing test or reading assessment by Thursday, you'll be taking the make up during class (instead of Current Events).
6. TUESDAY, APRIL 25: Fractional Banking System and the Federal Reserve
We saw a short film about money (explaining some basics about our fractional banking system), then worked on the assignment below (using the texts and links below). We emphasized understanding the monetary policy tools of the Fed known as the reserve requirements and the discount rates. On May 1, we'll continue with a visual demonstration/simulation of another monetary policy tool (open market operations).
Here is the assignment:
the_fed_monetary_policy_and_the_financial_crisis.pdf | |
File Size: | 51 kb |
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Here is the main reading:
monetarypolicy.pdf | |
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federal_reserve_system.pdf | |
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Here is the Vox.com link for the last four questions: "What did the Federal Reserve do during the financial crisis?"
5. FRIDAY, APRIL 21: The Indicators, Part II
1. Quick Quiz on the film ("Inequality For All") and economic indicators.
2. Emphasized the importance of solid attendance down the stretch (16 more class periods to go, after today) in order to run the "Economics & State" simulation. If attendance is erratic, we won't have the capacity or consistency to run it and will instead do a more traditional unit.
3. Gave presentations on "The Indicators" and took notes on it (from Thursday the 13th).
2. Emphasized the importance of solid attendance down the stretch (16 more class periods to go, after today) in order to run the "Economics & State" simulation. If attendance is erratic, we won't have the capacity or consistency to run it and will instead do a more traditional unit.
3. Gave presentations on "The Indicators" and took notes on it (from Thursday the 13th).
4. TUESDAY, APRIL 18: Inequality For All (film)
We viewed the film and completed a response to it.
3. THURSDAY, APRIL 13: The Indicators (GDP, CPI, Unemployment Rate, Gini Coefficient)
1. We did a Quick Quiz on AD/AS and the Business Cycle.
2. We began work on these four economic indicators (one per group) and attempted to create a superhero based on the indicator that can be pitched in a future class.
2. We began work on these four economic indicators (one per group) and attempted to create a superhero based on the indicator that can be pitched in a future class.
RESOURCES (4/13):
Links to short videos about GDP:
Link (GDP): What is GDP? (Investopedia video)
Link (GPI): What is the difference between GDP and GPI? (Investopedia video)
Link (GDP): What is GDP? (Investopedia video)
Link (GPI): What is the difference between GDP and GPI? (Investopedia video)
reading_the_inflation_rate.pdf | |
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Link (Inflation): What is inflation? (Investopedia video)
Link (Inflation): What is the CPI? (Investopedia video)
Link (Inflation): What is hyperinflation?
unemployment_.pdf | |
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2. TUESDAY, APRIL 11: Aggregate Demand and Aggregate Supply (Short Run and Long Run)
Whereas we spent many class periods during Unit 3 (Microeconomics) learning the concepts behind supply and demand graphs, and practicing how to make them, we will only need a period or two to do so in this unit (for what we really need to know in order to understand fiscal and monetary policy options, that is). Since we already understand "'Sup?" "Demand descends," "Left is Less," and "All right, all right, alright!" it will be easier to grasp the Aggregate Supply and Demand graphs (although the corresponding concepts may still be tricky). Aggregate is a fancy word for total. So, aggregate demand is the sum of demand for all products and services in a given nation's economy. Ditto with aggregate supply. The vertical axis is not price (for a specific product) but overall price level in the economy (as measured by something like the Consumer Price Index, which we'll learn about). The horizontal axis is no longer quantity demanded or quantity supplied, but Real GDP (which measures the size of an economy, and is adjusted for the effects of inflation). There are factors - beyond price - that can cause a change in aggregate demand or in aggregate supply (see lesson file below, plus handout about it). When the change in aggregate demand or supply happens, it will produce a higher price level (inflation) or a lower price level (in the direction of deflation). It will also produce higher Real GDP (economic growth, or expansion) or reduced economic activity (recession). In turn, recession will usually lead to higher unemployment and lower wages (levels of pay for workers), while an economic expansion based on Real GDP growth will usually lead to lower unemployment and higher wages. In other words, there is a ton of information about the macroeconomic performance of a nation packed into an aggregate supply and demand graph (and 3 of the 4 Macroeconomic goals of a nation that we discussed in class are there, in some form: higher economic growth, low and stable inflation, low unemployment). With it, we can better understand the Business Cycle. That is why it is foundational to the rest of the unit. Translation: If it isn't making any sense, come see me for help, so that it does make sense.
Here are the lesson notes:
understanding_aggregate_demand_and_supply.pdf | |
File Size: | 175 kb |
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Here is the practice packet covering the four key situations: increase in aggregate demand, decrease in aggregate demand, increase in aggregate supply, and decrease in aggregate supply:
practice_packet_aggregate_supply_and_demand.pdf | |
File Size: | 851 kb |
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Here is the specific, handy print out we received in class to help complete the Practice Packet on Aggregate Supply and Aggregate Demand:
handout_change_in_aggregate_demand_and_change_in_aggregate_supply.pdf | |
File Size: | 136 kb |
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Khan Academy links (helpful if you were absent, or if it's not making sense):
Changes in Aggregate Demand (summary lesson, written): https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/a/shifts-in-aggregate-demand-cnx
Changes in Aggregate Supply (summary lesson, written): www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/a/shifts-in-aggregate-supply-cnx
How the AD/AS model incorporates growth, unemployment and inflation (summary lesson, written): www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/a/how-the-ad-as-model-incorporates-growth-unemployment-and-inflation-cnx
Keynes' Law and Says' Law in the AD/AS model (summary lesson, written): https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/keynesian-thinking/a/keynes-law-and-say-s-law-in-the-ad-as-model-cnx
Changes in Aggregate Supply (summary lesson, written): www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/a/shifts-in-aggregate-supply-cnx
How the AD/AS model incorporates growth, unemployment and inflation (summary lesson, written): www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/a/how-the-ad-as-model-incorporates-growth-unemployment-and-inflation-cnx
Keynes' Law and Says' Law in the AD/AS model (summary lesson, written): https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/keynesian-thinking/a/keynes-law-and-say-s-law-in-the-ad-as-model-cnx
1. FRIDAY, APRIL 9: The Business Cycle, Macroeconomic Goals of Nations and an introduction to AD/AS
We introduced Macroeconomics and then learned about a crucial concept regarding it: the business cycle. This is a recurring pattern in market and mixed economies, but the exact timing of it is usually quite hard to predict. We took notes about the four phases of the business cycle (peak, recession or depression, trough, expansion or boom). We did NOT watch the video to the right, but if you were absent, you should totally watch it and take down notes. The production values are plenty cheesy, but the information is quite good.
Specific notes from the video are below, along with definitions of three key terms we will be studying in the unit (unemployment, economic growth, and inflation).
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We also looked at three or four macroeconomic goals that most nations aim to accomplish, along with examples of monetary and fiscal policy that might be used to try to respond to the business cycle and turn around recessions or slow down expansions.
four_macroeconomic_goals_of_a_nation.pdf | |
File Size: | 54 kb |
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Khan Academy links (helpful if you were absent, or if it's not making sense):
If you missed class, this Khan Academy video is a great refresher on the Business Cycle: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/business-cycle-tutorial/v/the-business-cycle
And this one does a good job of introducing the difference between monetary policy and fiscal policy: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/monetary-fiscal-policy/v/monetary-and-fiscal-policy
There is a short followup video on taxes as a level of fiscal policy (it builds on the previous link) here: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/monetary-fiscal-policy/v/tax-lever-of-fiscal-policy
And this one does a good job of introducing the difference between monetary policy and fiscal policy: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/monetary-fiscal-policy/v/monetary-and-fiscal-policy
There is a short followup video on taxes as a level of fiscal policy (it builds on the previous link) here: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/monetary-fiscal-policy/v/tax-lever-of-fiscal-policy