In the second half of an instructional video on graphing the money market supply graph, Mr. Clifford explains to macroeconomic students how the money market affects aggregate demand with an inflationary gap, and how the Fed reacts when actual GDP is well above potential GDP.

Concepts

monetary policy, inflation, the federal reserve system, money supply, macroeconomics

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Additional Tags

social studies

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Instructional Ideas

• Provide this video to students as a supplemental study aid, or as a way to summarize material you have reviewed in class

Classroom Considerations

• Before beginning this video, pupils should have a thorough understanding of the money market supply graph and how it affects aggregate demand with a recessionary gap, as well as the operations of the Fed in shifting money supply, which has been explained in previous videos in this series

• This video is hosted on YouTube

Pros

• Poses questions for students to complete as individual practice during the video
• Illustrates the graph on the whiteboard as he explains the concept

Cons

• Instructor moves through concepts fairly quickly

Common Core

SL.11-12.5 RH.11-12.4 RH.11-12.7 RH.11-12.8