Aggregate Supply

INTRODUCTION

Today we will study the concepts of short-run aggregate supply.

TODAY'S LECTURE (Hopkins 2.0)

Learning Target

    • Use current data to explain the influence of changes in spending, production, and the money supply on various economic conditions.

    • Use economic indicators to analyze the current and future state of the economy.

Criteria for Success

  • I will be able to use ideas related to the AS-AD model to analyze economic problems.

  • I will be able to demonstrate this understanding using a graph of the aforementioned model.

HOMEWORK

Assignments

  1. Read: Krugman (Module 18)

  2. Watch: The video lecture for today's topic (linked above).

  3. Optional: The videos linked below.

ASSESSMENTS AND ACTIVITIES

Formative Assessment (MCQ's): You will take a formal assessment during class. The assessment will consist of multiple-choice questions and one FRQ from an old AP Exam. Doing the problem of the day and ensuring that you understand it will help you prepare for today's formative assessment and help to ensure that you understand the concepts in this lesson.

Problem of the Day

  1. Explain the theory of "sticky wages" and why the existence of sticky wages would cause the short-run aggregate supply curve to slope upward.

  2. Explain why the long-run aggregate supply curve is vertical.