This lesson covers Topics 3.1-3.2 in the AP Syllabus. Today we build on the concept of demand by focusing on the macroeconomy and aggregate demand.
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.
Assignments
Read: Krugman (Modules 16 and 17)
Watch: The video lecture for today's topic and the Clifford video on the multiplier (linked above).
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
Define aggregate demand.
Explain why the aggregate demand curve is downward sloping.
In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Use a graph to explain what President Roosevelt might have been trying to achieve, using what you know about the concept of aggregate demand.