OVERVIEW: WEEK OF NOVEMBER 25th

Topic

ob-ko554_blinde_d_201010241814471.jpg We have come to the last two topics of this course, which I'm sure is a relief for most of you. However, don't slack off yet, because these two weeks are full of critical and important information regarding the other prescription policy used by policymakers to correct GDP gaps. In fact, you will spend two weeks on these chapters.

I am referring to the use of monetary policy that together with fiscal policy comprises the tools of policymakers for smoothing out the business cycle. This week, we will discuss both the role of money and the Federal Reserve, as well as the use of monetary policy and its intended affects and consequences.

We will wrap up the class by discussing the use of both fiscal and monetary policies as viable solutions for GDP gaps when used responsibly together.

In the chapter on monetary policy, ignore those sections that discuss the Phillips Curve. You will not be made responsible for these.

Objectives

By the end of this week, you will be able to:

  • Student will be able to analyze the role of money and banking in the influencing of aggregate economic performance.
  • Student will be able to compare and contrast various macro-economic theories of output, employment, and income.
  • Student will be able to explain the components of the money supply, how banks create money and how the Federal Reserve controls the money-creating powers of banks.
  • Articulate your understanding of quantitative easing.

Weekly Schedule

Due date Activity
Reading: Textbook Chapter 15
Study Guide Problems
Sunday, 12/1 Quiz #9