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 29: Labor markets and unemployment






March 4: Income inequality and poverty (Syllabus Section 2.4)

  • Homework Due: Read Mankiw (Chapter 20)

  • 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.

      1. Define: Natural rate of unemployment.
      2. Explain how the following combine to account for the unemployment rate.
        • Frictional unemployment
        • Structural unemployment
        • Seasonal unemployment
        • Cyclical unemployment
      3. Evaluate the different ways that unemployment could be reduced.

    • Lecture: Income inequality and poverty (PDF below)




March 6: The government budget and the tax system (Syllabus Section 2.4)

  • Homework Due: Read Mankiw (Chapter 12)

  • 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.

      • Evaluate the different ways that unemployment could be reduced.




March 8: Booms and busts, the accelerator effect, and Keynesian fiscal policy (Syllabus Section 2.4)









  • 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.
      1. Define budget deficit and government debt.
      2. Evaluate whether governments should employ income tax systems that are progressive or proportional (flat).

    • Lecture: Booms and busts, the accelerator effect, and Keynesian fiscal policy (PDF below)



March 12: The multiplier effect and crowding out effect
  • Homework Due: Read Section 3.4 (McGee) and watch the videos below.

    • Fiscal Policy and the Multiplier Effect




























    • Fiscal Policy and the Tax Multiplier




























    • Crowding Out Part 1

























    • Crowding Out Part 2

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

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

      1. Explain why Keynesians believe that recessions begin and persist and why fiscal policy is necessary in remedying them
      2. Use the ideas of neoclassical economists (Monetarists) and classical economists (Austrians) to evaluate the theory you explained in #1.




March 14: Supply-side economics (Syllabus Section 2.6)

  • 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.

      • Use the concepts of the multiplier and crowding out to evaluate Keynesian fiscal policy.




March 18: Reconciling demand-management and supply-side fiscal policies (test review)

  • Homework Due: Read Mankiw (Chapter 36 - Should Monetary and Fiscal Policymakers Try to Stabilize the Economy and Should the Government Balance Its Budget sections)

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

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

      • Evaluate the effectiveness of Keynesian fiscal policy. In your address each of the following (SL need to address 3 and 4 only):
        1. The multiplier effect
        2. The crowding out effect
        3. The reasons that neoclassical economists prefer no government intervention
        4. Market oriented and interventionist supply-side policies

    • Problem Set: Once you have completed your response, you will work on a fiscal policy problem set.


March 20: Fiscal policy test (multiple-choice only)


March 22: Fiscal policy test (papers)