4 Files 3:17 PM Fri May 13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: POLICY BASICS Use the space below to take notes during class. The Federal Reserve: Monetary Policy: Expansionary Monetary Policy: Contractionary Monetary Policy: Fiscal Policy: Expansionary Fiscal Policy: Contractionary Fiscal Policy: Automatic Stabilizers: Panel (a) Panel (0) Panel (1:) Price level LRAS SRAS Price level Price IOVOI 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: "THE FED\" AND BANKING Use the space below to take notes during class. The Federal Reserve \"The Fed\": The Fed Chair: Financial intermediary: Savers 235.15 ,1- satay.\" 5'4"r $ r; i iiii Borrowers Complete the "The Fed and Banking\" assignment in Canvas. 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: POLICY PRACTICE Draw a recessionary gap: A Draw an inflationary gap: Complete the "Policy Practice" assignment in Canvas. 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: MONETARY POLICY Use the space below to take notes during class. Federal Open Market Committee (FOMC): Open Market Operations: Reserve Requirement: Discount Rate: Dec Res Req Dec Disc Rate Buv Bonds Increase In AD Inc Res Req Inc Disc Rate Sell Bonds Decrease In AD 4 Files 3:18 PM Fri May '13 4 v.3: 80% - Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: SPENDING AND TAXES Use the space below to take notes during class. Budget Deficit: Budget Surplus: Balanced Budget: Securities: Government debt: Progressive tax: Proportional tax: Regressive tax: Use the following website to answer the questions below: htt s: datalab.usas endin . 0v americas finance- uide 1. How much was the federal government's revenue this past year? 2. How much revenue is that per person in the U.S.? 3. What are the three largest sources of revenue for the federal government? 4. How much was the federal government's spending this past year? 5. How much spending is that per person in the U.S.? 6. What are the five largest spending categories for the federal government? 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: MONETARY POLICY (Continued) Use the space below to take notes during class. Expansionary Monetary Contractionary Monetary Policy Policy "easy money" "tight money\" Open Market Operations Reserve Requirements Discount Rates Impact on interest rates Interest rates decrease Interest rates increase Panel (b) LRAS SRAS Price level Draw the shift in AD Complete the \"Monetary Policy\" assignment in Canvas. 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: FISCAL POLICY Use the space below to take notes during class. Disposable Income: How does a change in taxes impact disposable income? How does a change in government spending impact disposable income? Expansionary Fiscal Contractionary Fiscal Policy Policy Government Spending Pane! (b) Price IOVOI Draw the shift in AD Complete the "Fiscal Policy\" assignment in Canvas. 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: MONEY MARKET Use the space below to take notes during class. Money Market Model: Money Supply: Money Demand: Equilibrium Interest Rates: 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: MONEY Use the space below to take notes during class. Barter: Double coincidence of wants: Commodity money: Commodity-backed money: Fiat money: Functions of Money / Store of Value Definition: Medium of Exchange Definition: Unit of Account Definition: 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: _ POLICY GRAPHING PRACTICE These practice problems are to help you get used to using a model to express concepts we have been learning in class. You will have an opportunity to check your own work after each problem. 1. The economy is in an inflationary gap. 3. Draw and economy experiencing an inflationary gap. b. Would the Federal Reserve raise or lower the discount rate? c. Draw the shift in the AD/SRAS/LRAS model that would take place following the change in the discount rate. 2. The economy is in a recessionary gap. 3. Draw the economy in a recessionary gap. b. Would the government increase or decrease government spending? c. Draw the shift that would result from that change in spending. L 4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: DEFICITS AND DEBT Use the space below to take notes during class. Consequences of the National Debt Use the following website to answer the questions below: https:[[datalab.usasgending.gov[americas- finance- uide 1. How much was the federal government's decit this past yea r? 2. How much of a deficit is that per person in the U.S.? 3. What trends in the deficit over time can you see from the graphs? 4. How much was the federal government's debt this past year? 5. How much of a debt is that per person in the U.S.? 6. What percentage of our GDP is the national debt? (hint: it may be over 100%) 7. Who are the top owners of America's debt