Balancing Price Level and Real GDP Growth
Class AssignmentsPracticing Aggregate Demand
Disposable IncomeMarginal Propensity to Consume (MPC)Marginal Propensity to Save (MPS)Spending Multiplier= 1/(1-MPC)1= MPC + MPSChange in Consumption= MPC * Change in Disposable IncomeAggregate DemandShort Run Aggregate SupplyLong Run Aggregate SupplyLong- Run EquilibriumRecessionary Gaps- Need Expansionary PolicyInflationary Gaps- Need Contractionary PolicyFiscal PolicyThe Credit Market- https://www.intelligenteconomist.com/crowding-out-effect/ How government spending impacts the AD curveCrowding Out Theory- https://www.investopedia.com/terms/c/crowdingouteffect.asp Quick video showing a potential impact of government borrowingHelpful Websites- Always recognize the potential political perspective of the individual or organization that produced the websites. As macroeconomists do your best to stay above the political fray.https://www.youtube.com/watch?v=vj7XExwChwI- The Truth about savings and consumption by fee.orghttps://www.youtube.com/watch?v=qrHyDztQlBY- 60 second adventure into the paradox of thrifthttp://www.youtube.com/watch?v=oW6E25NODHE&safety_mode=true&persist_safety_mode=1&safe=active- Flipped lesson on the impact of fiscal policy on aggregate demandhttps://courses.lumenlearning.com/boundless-economics/chapter/aggregate-supply/ - an in depth look into the difference between SRAS and LRAShttp://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=contractionary+fiscal+policy- Step by step approach to fiscal policyhttps://www.coursera.org/lecture/strategic-business-management-macroeconomics/closing-recessionary-and-inflationary-gaps-cd85V - Is it better to cut taxes or increase government spending to get out of a recessionary gap? See how this University of California professor shows the math.
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Last Modified on March 23, 2020