AP Economics: 22 December 2009

Prayer (alphabetical)

You need a pencil for the Ch. 15 True/False Quiz.

Put your name on both the Scantron and the Quiz; you may write on the Quiz.

If you finish early, you may take out non-Economics work while you are waiting.

Current Events:

The Farmers Market in a Down Economy, Missoula, MT; in a down economy many people buy local; they buy American. A number of Farmers Markets do acceptably well in a recession.

AP Economics: Preliminary Analysis Ch. 6 T/F Quiz has been published and the grades have been posted. In addition, a Ch. 15 True/False Quiz page has been published with 38 Questions and has been available for study on Shanawiki. The Answer Key will be posted after the Quiz for additional study.

We will pick up where we left off: Ch. 16, PowerPoint presentation and Handout Ch. 16 questions.

Chapter Overview

Chapter Outline

Inflation, p. 428

Ron Paul questions Ben Bernanke on definition of inflation 07/21/2009

Inflation and Price level (p. 429)

Walker Todd, Research Fellow at the American Institute for Economic Research and former Federal Reserve official, speaks with Richard Morais of Forbes about the risks of severe inflation in the near future and gold as an investment hedge against inflation.

"To my knowledge, this is the first time since World War II, that any industrial economy, except for maybe Hungary, has tried to expand its money that much in a single calendar quarter; but traditional monetary theory teaches that, with a lag, it can be anywhere between six months to eighteen months typically, that money creation WILL catch up to you, observed by the public, in the form of a rising price level", says Todd.

Disinflation, p. 429

The failed bank list on the Federal Deposit Insurance Corp.'s web site is long, very long. If 2008 was the year of the financial crash what is 2009 with 123 bank failures, and still counting? Cf. Cf. The Deflation Times.

Inflation or Deflation?

Professor Sidney Winter, Deloitte and Touche Professor of Management , Emeritus at the Wharton School of the University of Pennsylvania, and currently the Michael Crouch Visiting Professor in Innovation and Entrepreneurship at the Australian School of Business on the dangers of inflation/deflation.

Email HW to gmsmith@shanahan.org.

1. We will have the Ch. 15 Objective Questions Quiz, Short Answer Quiz, and Multiple Question Test when we return after the break. We will also begin the Free Response Test questions after the break. The break will be an opportune time to catch up on HW (for those who fell behind and have work to make up) and to plan ahead for the rest of the class who are on track.