Embedded Files
Unit 2
Main topics:
AD AS Model: aggregate demand and aggregate supply
Equilibrium in Long Run
Wages
Classical vs General Theory in Macroeconomics
Essential Questions:
What is Aggregate Demand (AD) and Aggregate Supply (AS) analysis?
What are the determinants of AD and AS curves; AD = C + I + G + (X – M)?
What is the distinction between a movement along and a shift in AD and AS?
What is the interaction of AD and AS and the determination of the level of output, prices and employment?
What is aggregate demand and aggregate supply analysis?
What is the spending-multiplier concept and its impact on aggregate demand?
What are sticky-price and sticky-wage models and their implication for the aggregate supply curve in comparison to flexible prices and wages. How does the aggregate demand and aggregate supply model determine equilibrium income and price level and the impact of economic progress?
Why do fluctuations occur in the economy’s output and price level, both in the short run and in the long run?
Supporting Videos:
Jacob Clifford Aggregate Demand
https://www.youtube.com/watch?v=l6Udc6uDX8o
Jacob Clifford Short Run Aggregate Supply
https://www.youtube.com/watch?v=UwAQRnpVMzI
Jacob Clifford LRAS
https://www.youtube.com/watch?v=a2azB2eag5I
Jacob Clifford Spending Multiplier
https://www.youtube.com/watch?v=RqWYmQQzXxs&t=224s
https://www.youtube.com/watch?v=JQVfkH-2G-I
Please check out this calendar with all the classes and topics intended to be covered for Unit 2.
https://docs.google.com/document/d/1VnM5xaaSBN5zlsu8wVJVuZ5K1lmZfOFxSqfkA0vQuq4/edit
This is the AP Microeconomics Problem Bank for Unit 2 (AS AD).
https://docs.google.com/document/d/1-Cq66cYxmNrev64Hfajil3Qp0Xcx5JBpjg3wNvbc4O8/edit
This is a study guide for Unit 2 (AD AS):
https://docs.google.com/presentation/d/1RMxaakFeHwtkdzoAmd_igqpyEsPGhlkelPKVUCKLQPg/edit#slide=id.p
This is the link to this unit's first summative assessment
https://docs.google.com/document/d/12DluieQBIBxibgaA5QuNK9-ybfaBXenfizqegk27vf0/edit
Asynchronous Guide for Unit 2:
The following is the link for Paul Krugman's book
https://drive.google.com/drive/folders/1wKE2GfZakJnQHde9Eo5dCxDV28SwiYJB
These are the modules that have to be read for this unit:
Read Section 4, Module 16 pg 158 to 169 Income and Expenditures
Read Section 4, Module 17 pg 172 to 179 Aggregate Demand
Read Section 4, Module 18 pg 180 to 189 Aggregate Supply
Read Section 4, Module 19 pg 192 to 199 Equilibrium in AS AD
Read Section 4, Module 20 pg 201 to 208 Economic Policy and the AS AD Model
Read Section 4, Module 21 pg 211 to 217 Spending Multiplier
Class 1:
Whiteboard explanation of AS AD Model
Vocabulary for AS AD:
AS AD Model worksheet:
https://docs.google.com/document/d/1bnuSGTwbkaH1kYetVYCm33GePY-1EgHwsN5HxcuPcOw/edit
HW: Read Section 4, Module 18 pg 180 to 189 Aggregate Supply
Class 2:
Whiteboard explanation of AS AD Model: short run vs long run
Classical Theory: Smith, Marx and XIX century economist believed that long run equilibrium was reached when wages adjusted short run aggregate supply back to equilibrium (long run aggregate supply).
General Theory: Keynes and Post Great Depression and WWII economist believed that shocks could seriously hinder economies and that long run equilibrium was reached when wages adjusted short run aggregate supply back to equilibrium (long run aggregate supply), but that government and central banks could shift Aggregate Demand back to equilibrium (Long Run Aggregate Supply).
HW AP FRQ: In a piece of paper provided by your teacher, you will be asked to solve the following:
a. Answer all MCH (1-20). State the number and chosen letter.
b. Graphically explain five questions (these will be selected by your teacher).
c. Answer one FRQ (these will be selected by your teacher, 21 through 25)
d. In a short paragraph, give your views and position regarding free market economies, command economies, capitalism, communism.
Please submit this document for a formative grade at the beginning on next class (Class 3).
Kahoot
HW: Read Section 4, Module 19 pg 192 to 199 Equilibrium in AS AD
Class 3:
Please fill out the following survey:
https://docs.google.com/forms/d/1mWue-yCNcnsjcrAS2C1Bsr9VxShwb00asx49YtQ26I4/edit
This class we will be discussing the upcoming Federal Reserve and Banco de la Republica meetings:
https://docs.google.com/document/d/1PkdMRp-jybHFRxDJQQVLWJ8m-K9xORXg4hyZtbjdpGQ/edit
Class 4:
This class we will be discussing the upcoming Federal Reserve and Banco de la Republica meetings:
https://docs.google.com/document/d/1PkdMRp-jybHFRxDJQQVLWJ8m-K9xORXg4hyZtbjdpGQ/edit
Class 5:
Whiteboard explanation of AS AD Spending Multiplier
Review Survey results
AS AD: On a piece of paper, establish the following:
AP HW
In a piece of paper, solve 26 to 29 FRQ
Graphically explain 21 to 25
Turn in at the beginning of next class
Class 6:
Present summative
FRQ solved on board (Price Floor and ceiling)
Begin summative work
Read Section 4, Module 20 pg 201 to 208 Economic Policy and the AS AD Model
Class 7
Summative project work
https://docs.google.com/document/d/1bnuSGTwbkaH1kYetVYCm33GePY-1EgHwsN5HxcuPcOw/edit
Class 8:
Class 9: Class 10:
Class 11: Unit 2 Review
Class 12: Unit 2 Summative Evaluation
Class 13: History of Economic Thought II
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