AP MACROECONOMICS UNIT 3
Karl Marx and Market Failure
2/9 - 2/20
VOCABULARY:
KARL MARX
CIRCULAR FLOW
REAL FLOW
MONEY FLOW
HOUSEHOLD
PRODUCT MARKET
RESOURCE/FACTOR MARKET
INCOME
CONSUMER EXPENDITURES
REVENUE
COSTS
RENT/INTEREST/WAGES/PROFIT
MARKET FAILURE
MONOPOLY
INEQUITY
EXTERNALITIES
PUBLIC GOODS
ASYMETRIC INFORMATION
SOCIALLY OPTIMAL EQUILIBRIUM
TAXES/SUBSIDIES
BUSINESS CYCLES
SAVINGS
TROUGH/RECESSION/EXPANSION/PEAK
TRANSFER PAYMENT
JOSEPH SCHUMPETER
CLASSICAL THEORY
MONEY MARKET
AGGREGATE DEMAND
WEALTH EFFECT
INTEREST RATE EFFECT
EXPORT EFFECT
SHORT RUN/LONG RUN
AGGREGATE
SUPPLY
SHORT RUN EQUILIBRIUM
INVENTORY
DISEQULIBRIUM
RECESSIONARY GAP
INFLATIONARY GAP
LONG RUN EQUILIBRIUM
WEEK 6
2/9 - 2/13
LESSON
IN CLASS
HOMEWORK
Lesson 1
-
Review Unit 2 Test
Watch:
ACDC Flip Video 3.1: Circular Flow
Read:
Synopsis of M*A*S*H
Lesson 2
Watch:
MASH: For Want of a Boot
Activity:
Video Questions
-
What is the economic term for a direct exchange of goods for other
goods?
-
What is necessary for the direct exchange of goods in the market to
be successful?
-
Track the transactions in the video. Can you use a graph to
illustrate the exchanges?
-
Briefly explain the Cascade Failure in the episode.
-
Was the economic system portrayed in MASH efficient or inefficient?
Why or why not?
-
What might have made this system work more efficiently?
Answers must be
In Your Own Words.
This
MUST be turned in at the END of
class -- any assignment turned after class will be
penalized 1 point.
Bring:
Pencil for Video Quiz
Read:
Krugman, Module 10, pp. 102-106;
Brief biography of Karl Marx
Lesson 3
ESSENTIAL QUESTION:
What is the Circular Flow?
- The Circular
Flow
- The Real
Flow
- The Money
Flow
- Income:
rent, wages, interest, profits
- Revenue
and Costs
- Income:
rent, wages, interest, profits
- Product
Markets
- Resource
Markets
- The Real
Flow
- Say's Law: Y =
C
Activity::
Econo Market
Simulation
Watch:
ACDC Flip Video
3.2: Market Failure
Read:
Krugman,
Module
74 pp. 723-726; Module 76 pp. 743-750; Module 77
pp.754-756
Lesson
4
ESSENTIAL QUESTION:
What are the flaws of capitalism?
- Karl Marx
- Flaws of
Capitalism
- Monopoly
-
External Costs
- Asymmetric
Information
-
Public Goods
- Inequitable
Distribution of Income
-
Business Cycles
-
Y = C + S
-
Y = C + S
- Monopoly
QuickNotes:
Unit 3.1 Market Flaws
Watch:
ACDC Flip Video 3.3: Business Cycles
Read:
Krugman, Module 78 pp. 761-770; Module 79 pp. 782-785;
online synopsis of
Economics U$A #4:
Market Failure
Lesson
5
Economics U$A #4: Market Failure
Watch:
Economics U$A #4: Market Failure
Be prepared to answer
a short quiz based on the questions listed during the video, and discuss
the answers.
Activity:
Video Quiz 3.1
Watch:
ACDC Flip Video 3.4: Intro to AD/AS
Read:
Krugman,
Module 2, pp. 10-14
Bring:
Pencil for Video Quiz
*Makeup
-
If you are excused absent the day of a video,
follow these directions
to make up the quiz:
1. Watch
Economics U$A #4: Market Flaws
online here.
2. Take the
10 question online quiz here.
3. After completing
the quiz online, Email your scores to yourself then forward them to
rcrawford@nova.edu
This MUST
be done BEFORE the end of this Unit.
WEEK 7
2/17 - 2/20
LESSON
IN CLASS
HOMEWORK
NO SCHOOL MONDAY
Lesson 6
ESSENTIAL QUESTION: What was the capitalist response to Marxist
criticism?
-
Circular Flow
-
Money Market
-
Money Market
-
Classical Equilibrium
-
Y = C + S
-
S = I
-
Y = C + I
-
Y = C + S
-
Mechanisms of Equilibrium
-
Interest Rates
- Wages
-
Interest Rates
Quiz:
Circular Flow
QuickNotes:
Unit 3.2
Classic Equilibrium
Watch:
ACDC Flip Video
3.5: Aggregate Demand;
ACDC Flip Video
3.6: Aggregate Supply
Read:
Krugman,
Module 17, pp. 172-178; Module 18, pp. 179 – 189
Lesson
7
ESSENTIAL QUESTION: What are determinants of Aggregate Demand and
Short Run Aggregate Supply?
·
Aggregate
Demand
o
Taxes
o
Real
Wealth
o
Expectations
o
Debt
·
Aggregate
Supply
o
Costs
o
Unexpected
shocks
o
Taxes
·
The Philips Curve
QuickNotes:
Unit 3.2 Aggregate Supply and Aggregate Demand
Activity:
Worksheet 1 Aggregate
Demand,
Worksheet 2 Aggregate
Supply
Watch:
ACDC Flip Video
3.7: Aggregate Equilibrium
Read:
Krugman,
Module 19, pp. 190-198
Lesson
8
ESSENTIAL QUESTION: What is Aggregate Disequilibrium and how does it
self-correct?
- LRAS
-
GDP Gaps
-
Recessionary
-
Inflationary
-
Recessionary
QuickNotes:
Unit 3.3 Long
Run Equilibrium
Activity:
Worksheet 3 Classical
Equilibrium,
Worksheet 4 Long Run
Equilibrium
Watch:
ACDC Flip Video 3.7:
The Philips Curve
Read: Krugman, Module 34, pp. 331-336
Lesson
9
Watch: Dave
Activity:
Video Questions
-
After the President’s stroke, what should actually happen according to the Constitution? How does the Chief of Staff propose to use the Constitution to achieve power himself?
-
At the cabinet meeting, Dave decides to rearrange the budget based on recommendations of his friend, accountant Murray Blum. Does Dave have Constitutional Power as President to rearrange the budget? What other alternatives does the President/Dave have to get what he wants?
-
Dave announces a plan to eliminate unemployment. How would government achieve that goal, and how would that effect the economy?
Answers must be
In Your Own Words.
This
MUST be turned in at the END of
class -- any assignment turned after class will be
penalized 1 point.
VACATION
2/23-2/27
WEEK 8
3/3 - 3/7
LESSON
IN CLASS
ASSIGNMENTS
Lesson 11
Review Unit 3 material
-
Module 1, pp. 2-8
-
Module 3, pp. 16-22
-
Section 1 Appendix, pp. 34-37
-
Module 4 pp. 23-29
-
Module 74 pp. 723-726
-
Module 76 pp. 743-750
-
Module 77 pp.754-756
-
Module 78 pp. 761-770
-
Module 79 pp. 782-785
Review Unit 1, 2, and 3:
Use
online Textbook
site chapter notes and practice section quizzes
Watch:
Lesson 15
SUMMATIVE UNIT 3.2 ASSESSMENT
This test will consist of 35 multiple choice
questions, and two brief essays from the material and concepts in Unit
1, 2, and 3.
You will be expected to
draw graphs for the essay portion of this test, and write an essay in
brief format.
The test will be
counted out of 50 points.
Bring:
Pencil for Unit 3 test