U5: Macroeconomics

Microeconomics is about money you don't have, and macroeconomics is about money the government is out of.

P.J. O'Rourke

Be sure to visit the Course Calendar for nightly readings, upcoming due dates, etc. 


This unit is specifically a Macroeconomic unit of study that focusses on the influence of the federal government on the American Economy as well as the impact of aggregate economic behavior. We will learn how we measure various economic indicators and what types of fiscal and monetary policy tools the government or the Federal Reserve may use to solve economic problems.


  1. Draw a diagram of the Business cycle and label each phase. Explain the economic indicators of each phase.
  2. What role does the Federal Reserve System play in regulating the U.S. Economy? What are the three main tools the Fed can use and how can they impact the economy?
  3. What is inflation and how do we measure it? Who is helped and who is hurt by unanticipated inflation? Explain.

Key Terms 

  1. Gross Domestic Product (GDP)
  2. real GDP
  3. purchasing power
  4. deflation
  5. aggregate demand
  6. aggregate supply
  7. business cycle
  8. unemployment rate

Key Terms 1-8 PowerPoint


  1. full employment
  2. stagflation
  3. fiscal policy
  4. monetary policy
  5. Federal Open Market Committee
  6. reserve requirement
  7. discount rate
  8. prime rate

Key Terms 9-16 PowerPoint  


  1. open market operations
  2. budget deficit
  3. national debt
  4. proportional taxes
  5. progressive taxes
  6. regressive taxes

Key Terms 17-22 PowerPoint



People/Case Studies

  1. Milton Friedman
  2. John Maynard Keynes
  1. Steve Mnuchin
  2. Janet Yellen
  1. Council of Economic Advisors
  2. Internal Revenue Service


Ideas, Skills, and Concepts

  1. Measuring Economic Performance
  2. Business Cycle
  1. Monetary Policy
  2. Federal Reserve System
  1. Fiscal Policy
  2. Taxation