"Fill the plane 2020!"

Ch. #12 Aggregate demand and aggregate supply

Monday, November 11, 2019 – Friday, November 22, 2019

01/9-10 Weekend
Homework:
  • Chapter 12

11/11 Monday
In class:
  • No school

Homework:
  • Finish reading Ch 12

11/12 Tuesday (Period 5)
​
In class:
  • NOTE: section 12.4 (pages 272-273) is a HL topic, but not marked as such in the text
  • PPT lecture aggregate demand (#2-6 and 10-15)​
​
Homework:
11/13 Wednesday (Period 4)
In class:
  • Same as Tuesday

Homework:
  • Choice

11/14 Thursday
In Class: ​
Homework:
  • Choice

11/15 Friday
In class:
  • Lecture AS
  • PPT lecture aggregate supply (#22-29)

Homework:
​11/18 Monday
In class:
  • ​Chapter grading includes 10 point homework (2 X 5), 20 (2 X 10) point presentation, 30 (2 X 15) point free write and a 30 point MC for a total of 90
  • Lecture
    • Full employment or natural rate of unemployment - NRU (slide 30)
    • Demand deficient recession (slide 31 & 32)
    • Demand pull inflation (slide 33 & 34)
      • Factors of demand pull inflation:
      • Increases in consumption increases C
      • Decreases in exchange rate increases Xn
      • Increases in government spending increases G
      • Decreased expectations become self-full fulfilling decreasing C, I
      • Increase in interest rates decreases C, I
    • Cost push inflation (the return back to Yfe)
      • Factors of cost push inflation:
      • Wage inflation increases input costs
      • Government regulation
      • Taxes
      • Exchange rates
    • Negative supply shocks or "Stagflation" (slide 35)
    • Positive supply shock or "Economic growth" (slide 36)
    • Long-run economic growth (slide 37)
  • ​Fear of the boom and bust round 1 7:32m
    • ​Identify theory differences
  • In preparation for your Friday in-class free write assessment, using the Three graph method model provided, neatly draw each of the following on a separate page providing a narrative to explain your AD/AS diagram - collected on Thursday and scored for completion 5 pts.
    • ​​Beginning at full employment, a self determined (your choice) demand pull inflation example in the short run and the ensuing long run correction
    • Beginning in a recessionary gap, a self determined (your choice) policy change example that corrects the economy back to full employment
    • Beginning in an inflationary gap, a self determined (your choice) policy change example that corrects the economy back to full employment​
  • YouTube assignment​ (see Tuesday)
Homework:
11/19 Tuesday (Period 5)
In class:
  • Hand back IA, discuss touch points and samples:
  • Work period
    • Three graphs assignment
    • 2.2 worksheet
    • Prepare for Thursday's YouTube presentations
      • Individually (this is a change), prepare an ~3 minute YouTube video, uploaded (login: skylineibecon@gmail.com PW: shsecon2020) before class to answer your assigned IB exam 10 point "Explain" question. You will be assessed on content (DEED + 1 CLASPP) clarity, including an accurate definition, explanation of theory, quality of example and corresponding visual, relevant of CLASPP element selected, time and professionalism of presentation. Please put your question # in the title.
        • Your definition should be in a visual format
        • Your explanation of theory should be applied utilizing a hand drawn diagram(s) that you use. This portion should have you on camera applying, not just a diagram with a verbal explanation. We want to see you!
        • Your example should be a real world situation, preferably current, from another country outside of the USA. A picture, chart, graph or some other relevant visual is required to be integrated.
        • You should include a verbal description of one evaluation element from CLASPP to extend the "explain" exercise.
        • Professionalism of face time is necessary, as this is a practice situation for DECA presentations. Meaning, watch for filler words, fidgeting, etc.
        • We will watch one randomly selected video from each of the 10 questions and will discuss, using the mark scheme, IB rubric and examiners report comments as a guide to understand the demands of the question and the answers provided.
        • The teacher will provide a final score from all videos
      • The following questions and students are assigned below. Remember, this is individual, so duplicate examples will result in a no score.
        1. Explain how the aggregate demand curve can be shifted by a reduction in interest rates.
        2. Explain how an increase in investment might affect aggregate demand and aggregate supply.
        3. Explain how business spending on research and development and government expenditure on infrastructure might shift the long-run aggregate supply curve.
        4. Explain why, using the monetarist/new classical model, the economy will always return to the full employment level of output following a recession.
        5. Explain how an increase in the level of taxation can influence the level of aggregate demand in an economy.
        6. Explain the impact that a fall in the world price of oil might have on aggregate supply and gross domestic product (GDP) in an economy.
        7. Explain how aggregate demand might be affected by an increase in interest rates.
        8. Explain the possible impact of an increase in wealth and consumer confidence on aggregate demand.
        9. Explain how a deflationary gap might occur.
        10. Explain how increased investment by the government in education and training can affect both aggregate demand and aggregate supply.
        11. Explain how aggregate demand in an economy might be affected by a rise in the exchange rate and a decrease in the income of major trading partners.
  • Describe Friday's evaluate free write - collected and scored for accuracy applying an IB rubric 30 pts.
    • Possible terms for inclusion 
      • Long run and short run 
      • Aggregate supply 
      • Aggregate demand 
      • Inflationary gap 
      • Price level 
      • Sticky wages 
      • GDP & real GDP 
      • Stagflation 
      • Inflation & deflation 
      • Full employment 
      • Recession 
      • Trough and peak 
      • Market correction 
      • Ceteris paribus 
      • Demand pull
      • Cost push
      • Negative supply shock
      • Positive supply shock
      • Minimum wage
      • Unemployment benefits
      • Unions
    • Diagrams: 
      • Label axis, points and curves (use subscripts) 
      • Label shifts and changes w/ arrows 
      • Title 
      • PPC & Business cycle 
    • Relevant Theories: 
      • Neo-classical (Hayek) vs. Keynesian (Keynes)
      • Inflationary/deflationary gap 
      • Government intervention 
      • Determinants of shifts/changes 
      • Levels of employment/NRU
      • Changes in components of GDP 
    • Theoretical/Real examples: 
      • Relevant and specific examples correctly applied from list provided
    • Synthesis: 
      • Stakeholders 
      • Compare and contrast 
      • Cause and effect 
      • Intervention of Government 
  • Free write​ presentation preparation

Homework:​
  • Choice

11/20 Wednesday (Period 4)
In class:
  • Same as Tuesday
    ​
Homework:
  • ​Same as Tuesday

11/21 Thursday
In Class: Homework:
  • Choice

11/22 Friday
In class:
Homework:
  • Study for Monday MC quiz - 30 questions
  • Listen to Keynes vs Hayek podcast 28:29m (optional)
​
​
Key learning
AD graphic organizer​
AS graphic organizer
AD/AS/EQ learning objectives
AD learning objectives answers
AS learning objectives answers
EQ learning objectives answers
​Vocabulary
Diagrams

Textbooks:
Jason Welker (interactive)
Alternative textbook

Lecture notes:
Macro notes by chapter

Video lectures:
Jason Welker (our textbook)
AC/DC
Khan
Crashcourse

PPT lectures:
Jason Welker (our textbook)

Economic writing:
How to structure your essays
Command terms
Glossary

​Diagramming:
Key diagrams
​How to read and interpret graphs
Comprehensive list

Course resources
​​Course overview
Syllabus (Skyline)
IB course guide (official IB syllabus)
LO's by page #
Chapter index
IBO Sub reports
OSPI framework
Module review guides:
  Micro
  Macro
  International
  Development
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