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, 21, 26, 27, 30, 31, 32, 34, 35, 36

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

Unit 12 Practice Problems