Unit 7- AD/AS Model and Fiscal PolicyYou already know what makes a good, or poor, economy. Now, what if you were the government and had to help fix the economy. There is such a thing as an economy that is growing TOO FAST. How and why would the government, made up of our elected officials, would the government intervene in the economy. While death and taxes are certain, for a government, only TAXES and SPENDING are certain. While I cannot discern what came first, taxation or government spending, we can find their effects on the economy as a whole, and their effect on the AD curve.
In this unit, you will be given the information necessary to fix the economy as our elected officials do. Most of what you will first need is a background in diagnosing the economy and identifying the phase of the business cycle. You will need this knowledge to understand whether the economy needs expansion or contraction and to enact the appropriate policies. Remember, that what we study is theory and results may vary when you leave the safety of economic theory and go out into the world of the real.
Standard VII.A- Aggregate Demand

Standard VII.B- Short Run Aggregate Supply

Standard VII.C- Long Run Aggregate Supply

Standard VII.D- Macroeconomic Equilibrium

Part 1 Quiz


Standard VII.E- Principles of Fiscal Policy

Standard VII.F--Advanced Topics in Fiscal Policy

Standard VII.G- Classical vs. Keynesian Views of FP