AP MACROECONOMICS UNIT 4
John Maynard Keynes and Public Policy
3/9 - 4/2

UNIT 4 CONTENT MAP

Unit 4 Review Notes

Unit 4 Review Powerpoint

VOCABULARY:

JOHN MAYNARD KEYNES

MPC/MPS

MULTIPLIER

KCM

LABOR FORCE

UNEMPLOYMENT

NATIONAL INCOME ACCOUNTING

DISPOSABLE INCOME

EXPORT

IMPORT

REVENUE

EXPENDITURE

INTERMEDIATE GOOD

FINAL GOOD

VALUE ADDED

GDP/GNP

GROSS/NET

PER CAPITA

FRICTIONAL UNEMPLOYMENT

CYCLICAL UNEMPLOYMENT

STRUCTURAL UNEMPLOYMENT

NATURAL RATE

MINIMUM WAGE

INFLATION

DEFLATION

DISINFLATION

REAL/NOMINAL

PRICE INDEX

MARKET BASKET

DEFLATOR

FISCAL POLICY

NOMINAL WAGE

STICKY WAGES

SUPPLY SHOCK

DEMAND-PULL

STAGFLATION

STABILIZATION POLICY

EXPANSIONARY POLICY

CONTRACTIONARY POLICY

DISCRETIONARY POLICY

AUTOMATIC STABILIZERS

GROWTH

WEEK 9
3/10 - 3/14

LESSON

IN CLASS

HOMEWORK

Lesson 1

Review Unit 3 Test

Read: Krugman,  Module 35, pp. 345-347 Keynes versus Classical Theory

Watch ACDC Flip Video 4.1 Keynes versus Classical Theory

 

Lesson 2

ESSENTIAL QUESTION: How did Keynes differ from Classical Theory? 

  • Keynesian Criticisms of Classical Theory
    • Savings is NOT Investment
    • The Ratchet Effect
    • The Keynesian Consumption Multiplier
    • Keynesian Equilibrium

Quicknotes: 4.1 John Maynard Keynes

Read: KEYNES FOR KIDS!!

Watch: ACDC Flip Video 4.2 Keynesian Consumption Multiplier

Lesson 3

Economics U$A #5: John Maynard Keynes

Watch: Economics U$A #5 John Maynard Keynes

Be prepared to answer a 15 question short quiz based on the questions listed during the video, and discuss the answers.

Activity: Video Quiz 4.1

Bring:  Pencil for Video Quiz.

Read  Krugman,  Module 16, pp. 158-165 The Keynesian Consumption Multiplier

Watch: ACDC Flip Video 4.3 Calculating the Multiplier

*Makeup - follow these directions to make up the assignment:

  1. Watch Economics U$A #5 John Maynard Keynes

  2. Take the 15 question online quiz.

After completing the quiz, EMAIL the results to YOURSELF and then FORWARD your score to rcrawford@nova.edu

Lesson 4

ESSENTIAL QUESTION: What is the Consumption Multiplier?  

  • The Keynesian Consumption Multiplier
    • 1/MPS = KCM

QuickNotes: 4.2 The Keynesian Multiplier

Read:   Krugman,  Module 21, pp. 209-215  Fiscal Policy and the Multiplier

 Watch ACDC Flip Video 4.4 KCM and Spending; ACDC Flip Video 4.5  KCM and Taxes

Lesson 5

ESSENTIAL QUESTION: How does the Consumption Multiplier affect government policy?  

  • KCM and Spending
  • KCM and Taxes

Activity: Worksheet 4.1 Keynesian Consumption Multiplier

Read:   Krugman,  Module 10, pp. 106-110 National Income Accounting

 Watch ACDC Flip Video 4.6: GDP

WEEK 10
3/16 - 3/20

LESSON

IN CLASS

HOMEWORK

NO SCHOOL

Lesson 6

ESSENTIAL QUESTION: What is National Income Accounting?

  • GDP
    • Expenditures Method
      • C + Ig + G + Xn
    • Income Method
      • NY + KCA + IBT
      • Calculating GDP

QuickNotes:  4.3 National Income Accounting

Activity: Worksheet 4.2 Expenditures and Income

Read:   Krugman, Module 11, pp. 112-116 Gross Domestic Product

Watch: ACDC Flip Video 4.7: GDP and Growth

Lesson 7

Economics U$A #3: National Income Accounting

 

Watch: Economics U$A #3 National Income Accounting

Be prepared to answer a 15 question short quiz based on the questions listed during the video, and discuss the answers.

Activity: Video Quiz 4.2

Bring:  Pencil for Video Quiz.
Read  Krugman,  Module 12, pp. 118-124 Calculating Unemployment

*Makeup - follow these directions to make up the assignment:

  1. Watch Economics U$A #15: National Income Accounting

  2.  Take the 15 question online quiz.

After completing the quiz, EMAIL the results to YOURSELF and then FORWARD your score to rcrawford@nova.edu

Lesson 8

ESSENTIAL QUESTION: What is unemployment?

  • Unemployment
    • Frictional
    • Cyclical
    • Structural

 

Quiz:  4.3 GDP

QuickNotes:  4.4 Unemployment and the GDP Gap

Activity: Worksheet 4.3 Types of Unemployment

Read:   Krugman, Module 13, pp. 126-132 Categories of Unemployment

Watch: ACDC Flip Video 4.8: Unemployment

Lesson 9

ESSENTIAL QUESTION: Why is unemployment important?

  • Okun’s Law
    • 1% Cyclical = 2.5% Lost GDP

Activity: Worksheet 4.3 GDP Gap Worksheet Calculating Unemployment and GDP Gaps

Read:   Krugman, Module 14, pp. 134-140 Inflation

Watch: ACDC Flip Video 4.9 CPI

WEEK 11
3/22 - 3/27

LESSON

IN CLASS

HOMEWORK

Lesson 10

 ESSENTIAL QUESTION: What is inflation?

  • Inflation
    • CPI

QuickNotes:  4.5 Inflation

Read:   Krugman, Module 15 pp. 142-156 Calculating Inflation

Watch:  ACDC Flip Video 4.10 Nominal and Real GDP

Lesson 11

ESSENTIAL QUESTION: How can we make comparisons of aggregate production over time?

  • Nominal and Real GDP
  • GDP Deflator

Activity: Worksheet 4.4 on National Income Accounting and CPI

Use Inflation Calculator

Read:   Krugman,  Module 20, pp. 199-208:  Fiscal Policy

Watch: ACDC Flip Video 4.11 Fiscal Policy

 

Lesson 12

Economics U$A #5: Fiscal Policy

 

Watch: Economics U$A #5 Fiscal Policy

Be prepared to answer a 15 question short quiz based on the questions listed during the video, and discuss the answers.

Activity: Video Quiz 4.4

Read:   Krugman,  Module 21, pp. 209-215:  Automatic Stabilizers

*Makeup - follow these directions to make up the assignment:

  1. Watch Economics U$A #18: Fiscal Policy

  2. Take the 15 question online quiz.

After completing the quiz, EMAIL the results to YOURSELF and then FORWARD your score to rcrawford@nova.edu

Lesson 13

ESSENTIAL QUESTION: What are Automatic Stabilizers?   

  • Balanced Budget Multiplier
  • Automatic Stabilizers

 

Activity: Worksheet 4.5 Fiscal Policy

Practice AP Essay Question

Use Economist Weekly Indicators

 http://upload.wikimedia.org/wikipedia/de/thumb/6/65/The_Economist_Logo.svg/250px-The_Economist_Logo.svg.png

Read:   Krugman,  Module 30, pp. 296-305:  Long Run Implications of Fiscal Policy 

Lesson 14

ESSENTIAL QUESTION: What are the primary criticisms of Keynesianism?   

  • Criticisms of Keynesianism
    • Expansionary Bias
    • Structural Debt
    • Crowding Out
    • Stagflation
  • Friedrich Hayek
  • Milton Friedman

QuickNotes: 4.6: Criticisms of Keynesianism

Watch: Keynes v. Hayek Battle of the Century

Read:  Krugman, Module 35 pp. 343-353 Alternative Views of Macroeconomics

Watch: ACDC Economics 4.12 Graphing Practice

WEEK 12
3/30 - 4/2

LESSON

IN CLASS

HOMEWORK

Lesson 15

 

Activity: Worksheet 6 Fiscal Policy

Lesson 16

Review for Comprehensive Cumulative Senior Semester Summative Assessment

o    Module 1, pp. 2-8

o    Module 2, pp. 10-14

o    Module 3, pp. 16-22

o    Section 1 Appendix, pp. 34-37

o    Module 4 pp. 23-29

o    Module 5 pp. 47-56

o    Module 6 pp. 59-69

o    Module 7 pp. 71-76

o    Module 10, pp. 101-110

o    Module 11, pp. 112-116

o    Module 12, pp. 118-124

o    Module 13, pp. 126-132

o    Module 14, pp. 134-140

o    Module 15, pp. 142-148

o    Module 16, pp. 158-165

o    Module 17, pp. 172-178

o    Module 18, pp. 179 – 189

o    Module 20, pp. 199-208

o    Module 21, pp. 209-215

o    Module 30, pp. 296-305 

o    Module 35, pp. 345-347

o    Module 74 pp. 723-726

o    Module 76 pp. 743-750

o    Module 77 pp.754-756

o    Module 78 pp. 761-770

o    Module 79 pp. 782-785

 

MACRO 15 MINUTE REVIEW

MACROECONOMICS REVIEW PACKET

Review Unit 1, 2, 3, and 4: Use online Textbook site chapter notes and  practice section quizzes

Watch:

         ACDC Review 1.1 Fundamentals

         ACDC  Review 1.2 PPF

         ACDC Review 2.1 Comparative Advantage

         ACDC  Review 2.2 Demand

         ACDC Review 2.3 Supply

         ACDC Review 2.4 Market Equilibrium

         ACDC Review 2.5 Double Shifts

         ACDC Review 2.6 Floors and Ceilings

         ACDC Review 3.1: Circular Flow

         ACDC Review 3.2: Market Failure

         ACDC Review 3.3: Business Cycles

         ACDC Review 3.4: Intro to AD/AS

         ACDC Review 3.5: Aggregate Demand

         ACDC Review 3.6: Aggregate Supply

         ACDC Review 3.7: Aggregate Equilibrium

         ACDC Review Video 4.1 Keynes versus Classical Theory

         ACDC Review Video 4.2 Keynesian Consumption Multiplier

         ACDC Review Video 4.3 Calculating the Multiplier

         ACDC Review Video 4.4 KCM and Spending

         ACDC Review Video 4.5  KCM and Taxes

         ACDC Review Video 4.6 GDP

         ACDC Review Video 4.7: GDP and Growth

         ACDC Review Video 4.8: Unemployment

         ACDC Review Video 4.9 CPI

          ACDC Review Video 4.10 Nominal and Real GDP

         ACDC Review Video 4.11 Fiscal Policy

         ACDC Review Video 4.12 Graphing Practice

Lesson 17

COMPREHENSIVE CUMULATIVE SENIOR SEMESTER AP ASSESSMENT

This test will consist of 40 multiple choice questions, and TWO brief essays from the material and concepts in Unit 1, 2, 3, and 4.

You will be expected to draw a graph for the essay portions of this test, and use the proper vocabulary and formulas.

The test will be counted out of 100 points. 

Bring:  Pencil for Unit 4 test