Tuesday, May 10, 2016

Macro Morning Review

We will be reviewing key graphs and concepts before the AP Macroeconomics test, ask questions via Twitter @theMrMoulden or using #MacroMorning

Friday, April 22, 2016

Fix It Time

So now it's time to bring it all together ... we have measured the economy (GDP), identified the 2 economic problems (unemployment and inflation), measured those problems, see the impact of spending, taxes, and interest rates on the economy (Loanable Funds, Money Market, MPC/MPS, Tax and Spending Multipliers), and we have seen how all that can impact GPD/PL (AS/AD Graph and Phillips Curve). Now we just need to figure out who can do what, and give it a name.

If Congress (namely the House of Representatives - some AP Gov for you) decides it wants to help fix a problem - unemployment, i.e. recession, or inflation, it will use what is known as FISCAL POLICY. It will either change it's spending levels or tax levels to adjust the economy (mainly AD) to move the economy back to equilibrium. Let's let Crash Course explain ...





Now, sometimes Congress doesn't want to act or won't act. Have no fear, the economy has another option, one you already know, the Federal Reserve. The Federal Reserve will use its influence on interest rates (MONEY MARKET GRAPH) to influence the economy through what is known as MONETARY POLICY. Again Crash Course will take it from here ...


Now that's not to say that there are no side-effects from either policy option, or that these policy options always work. We will dive more into that tomorrow in class.

One more visit from Crash Course on one side-effect of Fiscal Policy - debt and deficits. Enjoy.

Tuesday, February 16, 2016

Loanable Funds and You

For Unit 2B we will continue looking at supply and demand graphs, but of very specific markets for Macroeconomics ...
    - Loanable Funds
    - Money Market
    - Foreign Exchange (or FOREX for short)

For today, you need to ....
    1. Watch the following videos
    2. Fill-in your notes while watching the videos
    3. Complete the practice problems on the back of the note page

Without further adieu here are the videos ..



Have questions about this graph or the practice problems? Ask via Twitter/Instagraph/Snapchat @theMrMoulden