Calendar9+-+The+Phillips+Curve

[|Boundless Learning]: Additional resources specifically developed for the textbook chapters below can be found by clicking the link to the left. **Beware**: You will have to sign up with Boundless Learning and choose Mankiw's textbook first. Then, you will have to search for the right chapter.


 * __May 8__:** The Phillips curve and the role of expectations (Syllabus Section 2.3)

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 * __Homework Due__: Read Mankiw Chapter 35 (The Phillips Curve and Shifts In The Phillips Curve: The Role Of Expectations sections) and watch the following videos.
 * 1) media type="youtube" key="vsbj2ppq7IQ" height="315" width="560"
 * 2) media type="youtube" key="GycD6uitKrA" height="315" width="560"
 * 1) [|Video #3]
 * 2) __Khan Academy__
 * [|Moderate inflation in a good economy]
 * [|Phillips Curve]


 * __Assessments and A__ __ ctivities __ : Lecture on today's topic


 * __Related Readings__
 * __[|Inflation]__
 * [|Present Value]


 * __May 10__:** The Phillips curve and supply-shocks (Syllabus Section 2.3)


 * __Homework Due__: Read Mankiw Chapter 35 (Shifts in the Phillips Curve: The Role of Supply Shocks section) and watch the following video.
 * __ Khan Academy __
 * [|Stagflation]


 * __Assessments and Activities__: Free-response/problem and lecture
 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * 1) Define the following terms: Phillips curve and natural-rate hypothesis.
 * 2) Draw the long-run tradeoff and the short-run tradeoff between unemployment and inflation on one graph.
 * 3) Suppose the natural rate of unemployment is 6%. On one graph, draw two Phillips curves that describe the four situations listed here.Actual inflation is 5 percent and expected inflation is 3 percent.
 * Actual inflation is 3 percent and expected inflation is 5 percent.
 * Actual inflation is 5 percent and expected inflation is5 percent.
 * Actual inflation is 3 percent and expected inflation is 3 percent.
 * __//Lecture//__: The Phillips curve and supply shocks


 * __Related Readings__
 * __[|OPEC and 1970's Stagflation]__


 * __May 14__:** The cost of reducing inflation and the natural rate hypotheses (Syllabus Section 2.3)

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 * __Homework Due__: Read Mankiw Chapter 35 (The Cost of Reducing Inflation section) and watch the following video.
 * __ Khan Academy __
 * __[|The unemployment rate]__
 * __Assessments and Activities__: Free-response/problem and lecture
 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * 1) Define the following term: supply shock.
 * 2) Suppose a drought destroys farm crops and drives up the price of food. What is the effect on the short-run tradeoff between inflation and unemployment.
 * __//Lecture//__: The cost of reducing inflation and the natural rate hypotheses


 * __May 16__:** Phillips curve review (Syllabus Section 2.3)


 * __Homework Due__: Be prepared for partner quiz.


 * __Assessments and Activities__: Free-response and lecture
 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * 1) Define the following term: adaptive expectations school and rational expectations school.
 * 2) Explain the role the long-run adjustment to full employment as it would be described by each of the following schools:
 * Keynesians
 * Adaptive Expectations School
 * Rational Expectations School
 * __//Lecture//__: Once you have completed your response, there will be a lecture on today's topic.


 * __May 20__:** The Phillips Curve test