William Rainey Harper College ECO 212 Macroeconomics in a Global Economy VIDEOS ~/~ Home ~/~ Syllabus ~/~ Schedule ~/~ Lecture Outlines ~/~ Assignments ~/~ Textbook Website ~/~ Online Lectures ~/~ Blackboard ~/~

VIDEO SOURCES:

• KA: Khan Academy: https://www.khanacademy.org/
• EC: EconClssroom http://www.econclassroom.com/
• MJ: YouTube - mjmfoodie https://www.youtube.com/playlist?list=PLF2A3693D8481F442
• AC: YouTube - ACDCLeadership http://www.youtube.com/user/ACDCLeadership
• EP: YouTube - ExamPop! http://www.youtube.com/user/ExamPop
• 1F:YouTube - 1funkyteacher http://www.youtube.com/user/1funkyteacher/videos (Solman Videos)
• MV Economic Music Videos
• EM EconMovies - http://www.youtube.com/channel/UCCQEbqDL8i40d83Au55lYMQ

SCHEDULE

January	February	March	April	May
Mon. Wed. | | | | 1/13- 1a 1/15 - 1b 1/20 No School 1/22 - 1c 1/27 - 1d 1/29 -2a	Mon. Wed. 2/3 - 3a 2/5 - 3b 2/10 - 3c 2/12 No School 2/17 - 20a - P1 2/19 - 20b 2/24 - 5a 2/26 - 5b	Mon. Wed. 3/3 - Exam1 3/5 - 12a 3/10 - 12b 3/12 - 9a - P2 3/17 - 9b 3/19 - 7a Spring Break Spring Break 3/31 - 8a	Mon. Wed. | 4/2 - 22Wa 14/7 - Exam 2 4/9 - 14a 4/14 - 15a 4/16 - 16a 4/21 - 16b 4/23- 10a - P3 4/28 - 13a 4/30 - 13b	Mon. Wed. 5/5- Exam 3 Review 5/12 - Final 5/14 - Final | | | | | |

TOPICS

Unit 1: ECONOMICS and GLOBALIZATION 1a - Syllabus, Math Quiz, 1b - 5Es 1c - What is Economics, Models, BCA, Budget Lines 1d - PPC 2a - Globalization 3a - Demand 3b - Supply 3c - Market Equilibrium 20a - Why we Trade: Comparative Advantage 20b - International Trade 5a - Role of Gov't, Gov't Finance 5b - Market Failures

Unit 2: INTRODUCTION TO MACROECONOMICS 12a - AD/AS 1 12b - AD/AS 2 9a - UE 9b - IN 7a - GDP 8a - EG 22Wa - LDCs

Unit 3: MACROECONOMIC POLICY 10a - Multiplier 13a - Fiscal Policy 13b - Other FP Issues and Debt 14a - What is Money,Money M arket Model, and the Fed 15a - How Banks Creatre Money 16a - Monetary Policy 16b - Other Macro Issues, Models

UNIT 1 - INTRODUCTION TO ECONOMICS AND GLOBALIZATION

1a Syllabus and introduction to Economic Globalization

Videos

• To watch 5 minute video: Click on: http://www.learner.org/resources/series86.html Scroll down to: 10. Developing Countries - How these nations have been helped or hurt by the rapid growth since WWII. Case studies: comparing South Korea and Sri Lanka; aid vs. trade in Tanzania. Click on Then slide the timer to minute 7:45 for the eight minute South Korea vs. Sri Lanka case study

Extra Videos

• Khan Academy Exercise: Graphing Points
• Khan Academy Exercise: Graphing Points 2
• How to Multiply and Divide Fractions in Algebra for Dummies (YouTube fordummies 1:50)
• Simple Equations (Khan Academy 11:06)
• Solving One-Step Equations (Khan Academy 1:54)
• Solving One-Step Equations 2 (Khan Academy 2:23)
• Practice (Khan Academy )
• Solving Ax + B = C (Khan Academy 8:41)
• Area and Perimeter (Khan Academy 12:20)

1b 5Es

Videos

• KA Introduction to economics (from S and D unit)
• AC Macroeconomics Unit 1 Intro: Basic Economic Concepts (AP Macro)
• EconMovies- Episode 1: Star Wars (Scarcity, Choices, and Exchange)

Reading

• Syllabus
• The 5Es of Economics (VERY IMPORTANT!)
• Ch. 3: "Efficient Allocation" pp. 58-59
• Ch. 3 and 6: "Diminishing Marginal Utility" pp. 49 and 117
• Ch.1, Appendix on Graphing

1c What is Economics, Models, BCA, Budget Lines

Videos

• Benefit Cost Analysis
  • EconMovies- Episode 2: Monty Python and the Holy Grail - Marginal Analysis (YouTube ACDCLeadership 5:27)
  • Thinking at the Margin (YouTube LearnLiberty 4:32)
  • Incentives and Marginal Analysis (YouTube MrHurdleHistory 8:54)
• Budget Lines
  • Econ 2 - The Budget Line (YouTube OC Economics 7:18)

Reading

• Ch 1, pp.1-11

Extra Videos

• MJM 2 Scarcity and Choice
• MJM 3 Resources
• MJM 4 Micro vs. Macro
• MJM 5A Models and Theories
• MJM 6 Graph Review
• KA Budget Lines

1d PPC

Videos:

• EC Scarcity, Op Cost, and the PPC
• EC Law of Increasing Cost and the PPC
• AC Micro 1.2 Production Possibilities Curve and Opportunity Cost: Econ Concepts in 60 Seconds
• KA Economic Growth Through Investment
• ECONMOVIES Episode 3: Monsters Inc. and the Production Possibilities Curve

Reading:

• Budget Lines: pp. 7-10
• PPC: pp. 11-14

Extra

• MJM 7 Individual PPC
• MJM 8 Oportunity Cost
• MJM 9 Society's PPC
• MJM 10 PPC and Resource Changes
• KA Scarcity, Possibilities, Preferences, and Opportunity Cost (14 videos)
• Opportunity cost
• Increasing opportunity cost
• Allocative efficiency and marginal benefit
• Economic growth through investment

2a Globalization (Structural Adjustment)

Videos

• Poland: Click on: http://www.learner.org/resources/series86.html Scroll down to: 11. Economies in Transition: Transforming former Communist countries into market economies. Case studies: state industries vs. private entrepreneurs in Russia; the success of Poland’s “shock therapy.” Click on (A free registration is required for first time users) Then slide the timer to minute 27:25 for the eight minute "The success of Poland’s 'shock therapy'" case study

• EC Circ Flow Model of a Market Economy
• KA Globalization I - The upside
• KA Globalization II - good or bad?
• ECONOMIC SYSTEMS
  • An Overview of Economic Systems ($1.98 at http://mindbites.com)
  • Power of the Market (YouTube LibertyPen 1:14)
  • Comparative Economic Performance ($1.98 at: http://www.mindbites.com)
  • 1F Capitalism vs Socialism (10:05) 
• AC Micro 1.1 The BIG Picture- AP Economics Overview (with links to playlists) (YouTube ACDCLeadership 12:49)

Readings

• Cuba Examines Asian Model For Economic Reforms (NPR Morning Edition)
• Textbook:
  • Chapter 2 ALL
  • PLUS
    • Ch. 2 Last Word: "Shuffling the Deck": p. 42
    • Ch. 8 The Last Word - "Economic Growth in China": p. 166
    • Ch. 8 Global Competition, p. 164
    • Ch. 20 The Last Word - "Petition of the Candlemakers, 1845": p. 419
    • http://www.harpercollege.edu/mhealy/eco212i/lectures/command/econsys.htm
    • Chapter 23W of the 16th edition of our textbook, pages 2-13, found on our Blackboard site
      • State Ownership and Central Planning: pp. 23W-2 to 23W-3
      • Problems with Central Planning pp. 23W-3 to 23W-5
      • The Collapse of the Soviet Economy pp. 23W-5 to 23W-6
      • The Russian Transition to a Market System pp. 23W-6 to 23W-9
      • Market Reforms in China pp. 23W-10 to 23W-11
      • Outcome and Prospects pp. 23W-11 to 23W-13
      • Conclusion pp. 23W-13

Extra Videos

• AC Does Capitalism Exploit Workers? YouTube LearnLiberty 6:08

3a Demand

Videos:

• EC The Law of Demand – HD (6:18)
• EC The Determinants of Demand (10:25)

Readings:

• Ch 3, pp. 47-53
• Optional, but very useful

Extra Videos

• MJM 11 Demand
• MJM 12 Changes in Demand vs. Changes in Quantity Demanded
• EC Linear Demand Equations Part 1 with exercises (econclassroom.com 6:41)
• EC Linear Demand Equations -- Shifts in Demand (econclassroom.com 14:16)
• AC Micro 2.1 Supply and Demand Curves- Basic Economic Concepts 4:49
• AC Change in Demand vs Change in Quantity Demanded- Key Concept 1:47
• KA Supply, Demand, and Market Equilibrium (15 videos)

Introduction to economics Law of demand Change in expected future prices and demand Price of related products and demand Changes in income, population, or preferences Normal and inferior goods Inferior goods clarification

Law of supply Factors affecting supply Long term supply curve Market equilibrium Changes in market equilibrium Breakdown of gas prices Short-run oil prices

3b Supply

Videos:

• MJM 13 Supply
• KA Factors affecting supply (6:57) NOTE : It looks like the supply graph is labelled "D", but that is just point D (A, B, C, D) on the supply curve.

  • 

• EP AP Macro-Economics - Determinants of Supply [YouTube - ExamPop]

Readings

• Ch3, pp. 53-56

Extra Videos

• AC Micro 2.1 Supply and Demand Curves- Basic Economic Concepts 4:42
• EC Linear Supply Equations
• EC Deriving demand and supply equations from a set of data

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 3c Market Equilibrium: So, what happens to Price and Quantity?

Videos

• Equilibrium
  • MJM 14 Market Equilibrium (5:12)
  • KA Changes in Market Equilibrium (9:04)
  • EP AP Macro-Economics - Ambiguous Changes in Supply and Demand (6:01)
  • AC Micro 2.3 Shifting Supply and Demand: Econ Concepts in 60 Seconds Practice (2:51)
  • AC Micro 2.4 Double Shifts in Supply and Demand: Econ Concepts in 60 Seconds (2:34)
  • EconMovies Episode 4: Indiana Jones (Demand, Supply, Equilibrium, Shifts) (7:02)

• Efficiency
  • AC Micro 2.2 Supply and Demand (Economics) (2:01)
  • Marginal Cost and Benefit (YouTube mseconprincess 3:29)
  • EC Efficiency and Equilibrium in Competitive Markets [begin at 7:27 and stop at 8:44, we will not cover consumer and producer surplus]

Readings

• Ch. 3 pp. 56-61, 69-74
• Ch. 5: pp. 93-99, Efficiently Functioning Markets
• Supply, Demand, and Economic Efficiency
• Optional, but very useful

Extra Videos

• AC Micro 2.2 Supply and Demand (Economics) (2:02)
• MJM 15 Price Floors and Price Ceilings
• EC Finding equilibrium price and quantity using demand and supply equations
• EC A supply and demand paradox – Why is the Chevy Volt twice the price of the Chevy Cruze?
• EC Supply, Demand and Equilibrium Test – Worked Solutions
• EC Consumer and Producer Surplus in the Linear Demand and Supply Model (econclassroom.com 10:01)
• EC Efficiency and Equilibrium in Competitive Markets (econclassroom.com 11:48)
• EC Determining the Effects of Price Ceilings and Price Floors (econclassroom.com 12:04)

20a Why we Trade: Comparative Advantage

Videos

• KA Comparative advantage specialization and gains from trade (8:55)
• EC Determining Comparative Advantage using PPCs – Worked solutions to AP Free Response Questions (8:27)

Readings

• Chapter 20: pp 398-407, 411-420
• "The Mystical Power of Free Trade"
  http://www.cnn.com/ALLPOLITICS/time/1999/12/06/free.trade.html

Extra Videos

• MJM 34 Comparative Advantage and Trade
• KA Comparative advantage and absolute advantage
• AC Micro 1.3 Comparative Advantage: Econ Concepts in 60 Seconds
• AC Micro 1.4 Comparative Advantage Practice: Output and Input Questions-AP Economics

   

20b International Trade and Foreign Exchange Markets

Videos

• MJM 35 Why do Countires Restrict Trade? (8:34)
• MJM 36 Types of Trade Restrictions (9:43)
• MJM 33 Exchange Rates (6:23)
• EC Introduction to the Foreign Exchange Market and Exchange Rate Determination (13:34)
• AC Macro 5.3- Foreign Exchange Practice (4:12)

Readings

• Flexible Exchange Rates pp. 429-430;
• Recent U.S. Trade Deficits pp.438-439

Extra Videos

• MJM 37 GATT/WTO
• MJM 38 Trade Blocks
• EC The Determinants of Exchange Rates and Managed Exchange Rate Systems (Net Export Effect) (17:43)
• EC A Quiz on Exchange Rate Manipulation
• EC The relationship between the Current Account Balance and Exchange Rates
• KA Floating exchange resolving trade imbalance (4:08)
• KA China pegs to dollar to keep trade imbalance (3:00)
• KA Review of China US currency situation (2:35)
• AC Macro Unit 5 Intro- FOREX and International Trade (1:35)
• AC Macro Unit 5.1- Balance of Payments (3:34)
• AC Macro 5.2- Foreign Exchange (FOREX) (5:06)
• AC Macro Unit 5, Question 7: Foreign Exchange and Real Interest Rates 2:20

5a Role of Gov't and Gov't Finance

Videos

• KA Basics of US income tax rate schedule (4:08)
• KA Tax Brackets and Progressive Taxtion (4:14)
• KA Chapter 01 - Learning Objective 1-1 -- Progressive, Proportional, Regressive Tax Structures (16:44)

Readings

• “The Role of Government” found in Web Chapter 22W, pp. 12 -13 at: http://highered.mcgraw-hill.com/sites/dl/free/0077337727/883829/mcc37727_ch22W_001_020.pdf
• Microeconomics Chapter 16, pp 238-246 (Government Finance; Federal Finance; State and Local Finance; Local, State, and Federal Employment; Apportioning the Tax Burden; The VAT). Found on our Blackboard site.

5b Market Failures

Videos

• EC Introduction to Market Failure and Negative Externalities of Production (econclassroom.com 14:45)
• EC Market Failure - Positive Externalities of Consumption (econclassroom.com 10:51)
• EC The Tragedy of the Commons as a Market Failure (econoclassroom.com 14:29)
• AC Micro 2.5 Government Price Controls (Floors and Ceilings): Econ Concepts in 60 Seconds 1:13

Readings

• Chapter 3: Application: Government-Set Prices pp. 61-64
• Chapter 5: Public Goods; Externalities; Government’s Role in the Economy pp. 99-110

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UNIT 2 INTRODUCTION TO MACROECONOMICS

12a AD/AS 1

Videos:

• Introduction: Business Cycles
  • AC Macro Unit 2 Intro: Measuring the Economy 2:11
  • MJM 23 Business Cycles 1:07 ("expansion = recovery")
  • EC The Business Cycle – Illustrating the Economy’s Booms and Busts (9:22)
  • EconMovies- Episode 5: Cars (GDP, Recession, and Fiscal Policy) (5:48)
• Aggregate Demand (AD)
  • MJM 24 AD and AS (5:32)
  • KA Aggregate Demand (13:53)
  • KA Shifts in aggregate demand (5:18)
  •  
• Aggregate Supply (AS)
  • MJM 25 (Macro) Episode 25: Macroeconomic Viewpoints (7:06) [explains shape of AS]
  • KA Long-run aggregate supply (4:35)
  • KA Short run aggregate supply (12:15)  
  •  
• Macroeconomic Equilibrium and Using the AD / AS Model
  • MJM 26 (Macro) Episode 26: Fiscal Policy (4:34)
  • KA Historical circumstances explained by AD/AS: Demand-pull inflation under Johnson (9:18)
  • KA Historical circumstances explained by AD/AS: Real GDP driving price (6:15)
  • KA Historical circumstances explained by AD/AS : Cost-push inflation (5:45)

Readings:

• Chapter 12 - Aggregate Supply and Aggregate Demand
  • Chapter 12 ALL (not the appendix)
  • PLUS:
    • Ch. 9: The Business Cycle: pp. 171-173
    • Ch. 13: Fiscal Policy and the AD-AS Model: pp. 258-261
    • Ch. 18: Taxation and AS (Supply -Side Economics): pp. 374-378
    • Ch. 18: From Short Run to Long Run / Applying the Extended AS-AS Model - pp. 362-368
    • Ch. 9: Types of Inflation: pp. 179-180
• Ch. 6 Reading Assignments:
  • Chapter 6 ALL
  • PLUS:
    • Review Ch. 9: The Business Cycle: pp. 171-173
    • Review Ch. 1: "Present Choices, Future Possibilities": pp. 16-18

Extra Videos

•  AC Macro 2.6- Business Cycle Unit Summary 1:33
• AC Macro Unit 3 Intro- Aggregate Demand, Aggregate Supply, and Fiscal Policy 2:10
• AC Macro 3.1- Aggregate Demand and Supply and LRAS; Macroeconomics 3:26
• AC Macro 3.1 AD, AS, and LRAS (Additional Version) 4:23
• AC Macro 3.3- Long- Run Aggregate Supply 2:37
• AC Macro 3.6- Classical vs. Keynesian Aggregate Supply- Macroeconomics 4:30
• MJM 23 Business Cycles
• EC An Introduction to Aggregate Demand (14:30)
  • NOTE: Income is NOT a determinant of AD. The video is WRONG.
  • The video uses "household DEBT" just like we did in class, but our textbook use "household BORROWING"
  • The video did not discuss how TAXES will change consumption and therefore AD.
  • The video did not discuss three other determinants of Investment that are in our textbook: technology, degree of excess capacity, and business taxes
  • Interesting that the video discussed taxes under government rather than under household consumption where it should be
  • Our textbook does not discuss government debt as a determinant of government spending
  • ignore the "domestic income" determinant of Xn
• EC An Introduction to Aggregate Supply – from Short-run to Long-run (24:48)
  • also includes macroeconomic equilibrium and changes in equilibrium
•  KA Aggregate Demand and Aggregate Supply (12 videos)
  • KA The business cycle (11:16)
  • KA Monetary and fiscal policy (8:54)
  • KA Tax lever of fiscal policy (2:40)
  • KA Keynesian economics (12:05)
  • KA Risks of Keynesian thinking (8:14)

12b AD/AS 2

Videos

Readings

• Chapter 12 - Aggregate Supply and Aggregate Demand
  • Chapter 12 ALL (not the appendix)
  • PLUS:
    • Ch. 9: The Business Cycle: pp. 171-173
    • Ch. 13: Fiscal Policy and the AD-AS Model: pp. 258-261
    • Ch. 18: Taxation and AS (Supply -Side Economics): pp. 374-378
    • Ch. 18: From Short Run to Long Run / Applying the Extended AS-AS Model - pp. 362-368
    • Ch. 9: Types of Inflation: pp. 179-180
• Ch. 6 Reading Assignments:
  • Chapter 6 ALL
  • PLUS:
    • Review Ch. 9: The Business Cycle: pp. 171-173
    • Review Ch. 1: "Present Choices, Future Possibilities": pp. 16-18

Extra Videos

• EC How to succeed on the AP Economics FRQ – Macro Question 1
• EC Introduction to Fiscal Policy – Expansionary vs. Contractionary Policies

9a UE

Videos

• MJM 18 Unemployment
• KA Unemployment Rate Primer v2 9:46
• MJM 19 Types of Unemployment (our textbook include seasonal unemployment as a pert of frictional unemployment)
• AC Macro 2.5- Unemployment and Natural Rate of Unemployment- AP Macro 1:55
• AC The Unemployment Game Show: Are You *Really* Unemployed? from Mint.com 2:10

Readings

• Chapter 9: ALL
• Ch. 7: "GDP Price Index," pp. 141-142

Extra Videos

• KA Unemployment (12:53)

9b IN

Videos

•  MJM 16 Inflation and Price Index (9:19)
•  

Readings

• Chapter 9: ALL
• Ch. 7: "GDP Price Index," pp. 141-142

Extra Videos

• AC Macro Unit 2.3- GDP Deflator Practice AP Macroeconomics 3:47
• AC Macro Unit 2.4- CPI Practice AP Macroeconomics 7:30
• MJM 16 Inflation and Price Index
• MJM 17 Real Income
• KA Inflation (15 videos)
  • Introduction to inflation 7:32
  • Actual CPI-U basket of goods
  • Inflation data
  • Real and nominal return
  • Calculating real return in last year dollars
  • Relation between nominal and real returns and inflation
  • Deflation
  • Velocity of money rather than quantity driving prices
  • Deflation despite increases in money supply
  • Moderate inflation in a good economy
  • Stagflation
  • Deflationary spiral
  • Hyperinflation
  • Unemployment rate primer
  • Phillips curve 

7a GDP

Videos:

•  
• EconMovies- Episode 6: Back to the Future (Nominal vs. Real, Unemployment, Inflation) (6:29)

Readings: Chapter 7 - ALL 

Extra Videos:

• AC Macro Unit 2 Intro: Measuring the Economy 2:11
• AC Macro Unit 2.1- GDP and Economic Growth 3:38
• AC Macro Unit 2.2- Nominal and Real GDP Advanced Placement Macroeconomics 1:42
• MJM 20 GDP
• MJM 21 Real GDP
• EC The Income Approach and the Expenditure Approach to Measuring the GDP of a Nation
• EC Updated: Real versus Nominal GDP and the GDP Deflator
• KA GDP (11 videos)
  • Introduction to economics
  • Circular flow of income and expenditures
  • Parsing gross domestic product
  • More on final and intermediate GDP contributions
  • Investment and consumption
  • Income and expenditure views of GDP
  • Components of GDP
  • Examples of accounting for GDP
  • Real GDP and nominal GDP
  • GDP deflator
  • Example calculating real GDP with a deflator

8a EG

Videos:

Readings:

• Chapter 8 - ALL
• Ch. 1 "A Growing Economy" pp. 15-16
• Web Chapter 22W - ALL
  • found at: http://highered.mcgraw-hill.com/sites/0077337727/student_view0/web_chapters_and_supplements.html
• Also read: http://www.harpercollege.edu/~mhealy/g101ilec/intro/eco/ecomea/ecomeafr.htm

Extra Videos:

• AC Macro 3.12- Economic Growth 2:33
• MJM 22 Growth

22Wa LDCs

Videos:

Readingsw:

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UNIT 3 MACROECONOMIC POLICY

10a Multiplier

Videos:

Readings: Chapter 10 ALL

Extra Videos:

• AC Macro 3.8- Multiplier Effect, MPC, and MPS (AP Macroeconomics) 2:17
• AC Macro 3.9- Calculating the Multiplier (Macroeconomics) 1:50

13a FP

Videos:

Readings:

• Chapter 13 ALL
• PLUS Review Ch. 18 pp. 374-378 "Taxation and Aggregate Supply"

Extra Videos:

• AC Macro 3.2- Inflationary and Recessionary Gaps with Fiscal and Monetary Policy AP Macro 4:04
• AC Macro 3.11- Multiplier and Taxes Practice 3:21
• AC Macro 3.10- Multiplier and Spending Practice- AP Macro 2:03
• AC Macro 3.7- Fiscal Policy: Non-discretionary vs Discretionary "AP Macro" 2:15
• AC Macro 4.7- Loanable Funds & Crowding Out 3:08
• MJM 26 Fiscal Policy
• MJM 27 Crouding Out and Lags
• EC Introduction to Fiscal Policy – Expansionary vs. Contractionary Policies
• EC Fiscal Policy – the Government Spending Multiplier
• EC Fiscal Policy – the Tax Multiplier
• EC Fiscal Policy – the Crowding-out Effect
• EC Fiscal Policy – another interpretation of the Crowding-out Effect
• EC How to succeed on the AP Economics FRQs – Macro Questions 2 and 3
• KA MPC and multiplier
• KA Mathy version of MPC and multiplier (optional)

13b Other FP and Debt

• MJM 25 Macroeconomic Viewpoints
  Does the economy self-adjust? If so, what is the role for the government if the economy is not where we'd like it to be? This video takes a brief look at two different schools of economic thought.
• MJM 28 Taxes and Budget
• KA Deficit and debt ceiling
• KA Government's financial condition

14a What is Money? Money Market Model, and the Fed

Videos:

Readings: Chapter 14: ALL

Extra Videos:

• AC Macro Unit 4 Intro- Monetary Policy (AP Macroeconomics) 1:53
• AC Macro 4.1- Money Market and FED Tools (Monetary Policy) 5:21
• AC What is the Fed? 2:37 by FedReserveBoard
• MJM 29 What is Money
• MJM 31 The Fed
• EC Introduction to the Money Market (9:48)
• KA The Monetary System (8 videos)
  • Overview of fractional reserve banking
  • Weaknesses of fractional reserve lending
  • Full reserve banking
  • Money supply: M0, M1, and M2
  • Simple fractional reserve accounting (part 1)
  • Simple fractional reserve accounting (part 2)
  • Interest as rent for money
  • Money supply and demand impacting interest rates

15a How Banks Create Money

Videos:

Readings:

• Chapter 15: ALL 
• Chapter 16: Interest Rates pp. 315-317 ???????

Extra Videos:

• AC Macro Unit 4, Question 2- Bank Balance Sheet 1:32
• AC Macro 4.4-Money Multiplier & Reserve Requirement (AP Macro) 2:44
• AC Macro 4.5- Money Multiplier Practice (AP Macro) 3:03
• AC Macro 2012 FRQ #2 3:32
• AC Macro 4.6- Interest Rates: Real vs Nominal Practice 2:35 ???????
• MJM 30 Creating Money
• EC Money Creation in a Fractional Reserve Banking System
• KA Money, Banking, and Central Banks (85 videos)
• KA Banking 4: Multiplier effect and the money supply

16a MP

Videos:

• MJM 32 Monetary Policy (7:18)
  • NOTE: this is a simplistic introduction. The three ACDC Leadership videos below are much better
  • NOTE: when she discusses a CHANGE IN RESERVES she really means a change in EXCESS reserves (ER)
  • NOTE: she also does not discuss how a change in the required reserve ration (r) not only changes the size of the multiplier, but it also changes the amount of excess reserves (ER)
• Macro 4.1- Money Market and FED Tools (Monetary Policy) 5:20 [YouTube ACDCLeadership]
• Macro 4.2- Monetary Policy and Aggregate Demand 3:21 (recessionary gap) [YouTube ACDCLeadership]
  • NOTE: the LRAS curve is the level of output where full employment is achieved. We used RDO_f in class or Q_f on the graphs below
• Macro 4.3- Graphing Monetary Policy Practice (AP Macroeconomics) 2:44 (inflationary gap)[YouTube ACDCLeadership]
  • NOTE: the LRAS curve is the level of output where full employment is achieved. We used RDO_f in class or Q_f on the graphs below

Readings:

Extra Videos:

• EC The Tools of Monetary Policy (16:30)
• EC Introduction to the Money Market (9:48)
• EC Evaluating the Effectiveness of Monetary Policy During Recessions (15:45)

16b Other Macro Issues, Models,

Videos:

Readings:

Extra Videos:

• EC Measuring the Macroeconomic Objectives: Economic Growth, Unemployment and Inflation
• EC The Short-run Phillips Curve
• EC The Long-run Phillips Curve
• EC Introduction to Supply-side Policies
• AC Macro 3.4- The Phillips Curve (Short and Long Run)AP Economics 3:48
• AC Marco 3.5- Graphing Practice (AP Economics) 4:36
  Mr. Clifford explains how to show recession and inflation on four different models: AD and AS, Phillips Curve, PPC, and Business Cycle.