Introduction/Possible Activities:

B. Students will demonstrate an understanding of the Rational Expectations Theory by:
1. Explaining the Short-Run Phillips Curve (SRPC).
a. Differentiating between a movement along and shift of the SRPC.
b. Listing factors that could cause the SRPC to shift.

Learning Activities:

1. Watch the video below and take notes.

2. Complete the following worksheet after having watched the video. Try from memory first before using your notes: