Vi
Boundless Learning: Additional resources specifically developed for the textbook chapters below can be found by clicking the link to the left. Beware: You will have to sign up with Boundless Learning and choose Mankiw's textbook first. Then, you will have to search for the right chapter.


February 7: Aggregate demand (Syllabus Section 2.2)

  • Homework Due: Read Mankiw (Chapter 33 - Three Facts About Economic Fluctuations, Explaining Economic Fluctuations and The Aggregate-Demand Curve sections). Also, watch the following video.




February 15: Short-run aggregate supply and equilibrium (Syllabus Section 2.2)

  • Homework Due: Read Mankiw (Chapter 33 - The Aggregate-Supply Curve and Two Causes of Economic Fluctuations sections) and watch the following videos.

  • Assessments and Activities: Free-response/problem and lecture

    • Free-response/problem: You will work cooperatively with your partner to construct a response to the following prompt.

      • 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. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate supply and aggregate demand.




February 19: Long-run aggregate supply, economic growth, and economic development (Syllabus Section 2.2)


  • Homework Due: Read Mankiw (Chapter 25)

  • Assessments and Activities: Free-response/problem and lecture

    • Free-response/problem: You will work cooperatively with your partner to construct a response to the following prompt.

      • For each of the three theories for the upward slope of the short-run aggregate supply curve, explain the following:
        • How the economy recovers from a recession and returns to its long-run equilibrium without any policy intervention.
        • What determines the speed of that recovery.




February 21: Short-run inflationary and recessionary gaps and the adjustment to the long-run (Syllabus Section 2.2)

  • Homework Due: None

  • Assessments and Activities: Free-response and lecture

    • Free-response/problem: You will work cooperatively with your partner to construct a response to the following prompt.

      • Supppose firms become very optimistic about future business conditions and invest heavily in new capital equipment.

        1. Draw an AS-AD diagram to show the short-run effect of this optimism on the economy. Label the new levels of prices and real output. Explain in words why the aggregate quantity of output demanded changes.
        2. How might the investment boom affect the long-run aggregate supply curve? Explain.
        3. Draw a new diagram to show the new long-run equilibrium of the economy. Explain in words why each of the following changes in the long-run.
          • LRAS
          • SRAS
          • AD




February 23: Review for test on AS-AD

  • Homework Due: Bring all review materials to class.

  • Assessments and Activities: Free-response/problem and test review

    • Free-response/problem: You will work cooperatively with your partner to construct a response to the following prompt.
      • Assume that the economy is experiencing a recession caused by a decrease in aggregate demand. Explain whether and how the economy would adjust in the long-run according to:
        1. A neoclassical economist
        2. A Keynesian economist


February 27: Test on AS-AD model