AP MACROECONOMICS UNIT 4
John Maynard Keynes and Public Policy
3/10 - 3/2
1

UNIT 4 CONTENT MAP

Unit 4 Review Notes

Unit 4 Review Powerpoint

VOCABULARY:

John Maynard Keynes

Classical Theory

MPC/MPS

Multiplier

KCM

Consumption Function

Inventory

Aggregate Demand

Aggregate Supply

Long Run Aggregate

SUPPLY

WEALTH EFFECT

INTEREST RATE EFFECT

FISCAL POLICY

NOMINAL WAGE

STICKY WAGES

SHORT RUN EQUILIBRIUM

LONG RUN EQUILIBRIUM

SUPPLY SHOCK

DEMAND-PULL

STAGFLATION

RECESSIONARY GAP

INFLATIONARY GAP

STABILIZATION POLICY

EXPANSIONARY POLICY

CONTRACTIONARY POLICY

DISCRETIONARY POLICY

AUTOMATIC STABILIZERS

GROWTH

WEEK 9
3/10 - 3/14

LESSON

IN CLASS

HOMEWORK

Lesson 1

 ESSENTIAL QUESTION: What is inflation?

  • Inflation
    • Nominal vs Real
    • CPI
  • GDP Worksheets

 

QuickNotes: Unit 3 Powerpoint Lesson 4

Assignment: Complete Worksheets on National Income Accounting and CPI

Answers must be In Your Own Words.

This MUST be turned in at the END of class -- any assignment turned after class will be penalized 1 point.

Read:   Krugman, Module 15, pp. 142-148

Watch:  ACDC Flip Video 3.5: Inflation

Watch: ACDC Flip Video 3.6: Nominal and Real GDP

Lesson 2

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

  • Nominal and Real GDP
  • GDP Deflator

Activity: Use Inflation Calculator

Read:  Krugman,  Module 19, pp. 180 – 198  Aggregate Equilibrium

Economist Weekly Indicators

Watch ACDC Flip Video 4.1: LRAS and GDP Gaps

Lesson 3

ESSENTIAL QUESTION: What is the relationship between unemployment and inflation in the Classical model?

  • AD/AS/LRAS
  • Classical Equilibrium
    • Y = C + S
    • S = I
    • Y = C + I
  • GDP Gaps
    • Recessionary
    • InflationaryQuiz CPI and Real GDP

QuickNotes: Unit 4 Powerpoint Lesson 1: Classical Aggregate Supply and Aggregate Demand

Read:  Krugman,  Module 34, pp. 331-337 The Phillips Curve

Watch ACDC Flip Video 4.2: The Philips Curve

http://www.crawfordsworld.com/rob/AP_Macro_Semester/ADASCycle.jpg

Lesson 4

         The Philips Curve

Assignment: Worksheet 1 Aggregate Demand, Worksheet 2 Aggregate Supply, Worksheet 3 Classical Equilibrium, Worksheet 4 Long Run Equilibrium

Answers must be In Your Own Words.

This MUST be turned in at the END of class -- any assignment turned after class will be penalized 1 point.

  http://www.crawfordsworld.com/rob/AP_Macro_Semester/APM2_Images/phillips.gif

Watch ACDC Flip Video 4.3: The Keynesian Consumption Multiplier

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

 Brief Biography of John Maynard Keynes

Please Peruse KEYNES FOR KIDS!!

http://www.crawfordsworld.com/rob/AP_Macro_Semester/APM2_Images/jmk-portrait.gif


Lesson 5

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: Unit 4 Powerpoint Lesson 2: The Keynesian Consumption Multiplier

 

Assignment: Worksheet 5 Keynesian Consumption 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

http://www.crawfordsworld.com/rob/AP_Macro_Semester/KeynesASAD.jpg

WEEK 10
3/17 - 3/2
1

LESSON

IN CLASS

HOMEWORK

Lesson 6

ESSENTIAL QUESTION: How does the Multiplier affect Fiscal Policy?   

  • KCM and Spending
  • KCM and Taxes

Quiz: AD/AS quiz

Assignment: Worksheet 6 Fiscal Policy

Watch ACDC Flip Video 4.6: Fiscal Policy

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

 

Lesson 7

ESSENTIAL QUESTION: What are Automatic Stabilizers?   

  • Balanced Budget Multiplier
  • Automatic Stabilizers

 Watch ACDC Flip Video 4.7: KCM Practice

http://www.crawfordsworld.com/rob/AP_Macro_Semester/APM2_Images/img32.jpg

Lesson 8

ESSENTIAL QUESTION: What are the primary criticisms of Keynesianism?   

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

QuickNotes: Unit 5 Powerpoint Lesson 1: Criticisms of Keynesianism

Read Module 23, pp. 231-235 Money; Module 25, pp. 243 – 251: Banks and the Money Multiplier

Watch: ACDC Economics 5.1 Macro: Money Multiplier

Lesson 9

Review for Unit 4 assessment

Assignment: Practice AP Essay Question

Bring:  Pencil and notes for group fiscal policy exercise

Answers must be In Your Own Words.

This MUST be turned in at the END of class -- any assignment turned after class will be penalized 1 point.

REMEMBER ALL TESTS ARE CUMULATIVE!!

Watch ACDC Flip Video 4.8: Graph Review

Review:

  • Module 1, pp. 2-8
  • Module 2, pp. 10-14
  • Module 3, pp. 16-22
  • Section 1 Appendix, pp. 34-37
  • Module 4 pp. 23-29
  • Module 5 pp. 47-56
  • Module 6 pp. 59-69
  • Module 7 pp. 71-76
  • Module 10, pp. 101-110
  • Module 11, pp. 112-116
  • Module 12, pp. 118-124
  • Module 13, pp. 126-132
  • Module 14, pp. 134-140
  • Module 15, pp. 142-148
  • Module 19, pp. 180 – 198 
  • Module 20, pp. 199 – 208
  • Module 21, pp. 209-215
  • Module 34, pp. 331-337
  • Section 14 PP. 723-724, 731, 743, 754, 761, 782

Lesson 10

  • UNIT 4 ASSESSMENT

This test will consist of 30 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 portion of this test, and write an essay in brief format.

The test will be counted out of 40 points. 

Bring:  Pencil for Unit 4 test