1. ECONOMICS: April 18
Warm-up If the economy is experiencing excess inflation, how would economic policy-makers use the fiscal policy tools? What would be the impact on the govern-ment budget and the national debt? Who is responsible for fiscal policy? Economics Learning Target
In order to understand how the government works to promote the economic goals of full employment, price stability, and economic growth, I will analyze supply-side policy. I will know I have it when I can: (1) list the supply-side policy tools; (2) explain Reaganomics; (3) draw AD-AS graphs illustrating how supply-side policy can remedy stagflation; and (4) understand arguments for and against the theory. --Economic Theorists
-F.A. Hayek and free market policy (HO—class set)
-Keynesianism vs. Austrian School (Hayek) video clip (4:25-9:10) Ch. 15, Lesson 2: Supply-Side Policies (HO) --Supply-side basics; origins of modern supply-side management (stagflation of the 1970s) and the depiction of stagflation in the AD-AS graph; Reaganomics; supply-side vs. demand-side depiction of “trickle down” economics; supporters vs. skeptics
Closure How do S-side and D-side management of the economy compare? (see back of Supply-Side HO for guidance)
Keynes vs. Hayek
Assignment Make sure you have read Ch. 15, Lessons 1-3