AP Unit XII: Stabilization Policies

A. Fiscal and monetary policies Scales Unit 12
1. Demand-side effects
2. Supply-side effects
3. Policy mix
4. Government deficits and debt
B. The Phillips curve
1. Short-run and long-run Phillips curves
2. Demand-pull versus cost-push inflation
3. Role of expectations

Topics: Budget Balance, Fiscal Policy, Automatic Stabilizers, Monetary Policy and Interest Rates, The Phillips Curve (SR,LR), Macroeconomic Views Over Time
Readings: Module 20, 26, 27, 30, 31, 32, 34, 35, 36
Assignment: p.291-293 (#14,21) p.363-364(#1,2,5,6,7,10,11,12) MC Section 6(9)

Fiscal Policy Crowding Out and Lags
Taxes and Budget


Active Policy Essay Rubric

Active v. Passive Policy Decisions
Russel Roberts Video Keynes v. Hayek
Keynes v. Hayek rd 2
Crowding Out and Lags