Today’s class covered the important concept of the AD-AS curve, which stands for the aggregate demand-aggregate supply curve. This curve that compares demand and supply in terms of the aggregate price level and real GDP is a vital tool when talking about the macroeconomy. Mr. Coleman discussed the distinction between long-run aggregate supply and short-run aggregate supply and the output gap that can result from the difference between actual aggregate output and potential output. Even though the economy is self-correcting in the long run, the government can enact fiscal policies or monetary policies to speed up recoveries. We also learned about money, a seemingly simple idea but is actually quite complex. The United States now uses fiat money, money that has value because we agree upon it, as opposed to commodity-backed money, which was used in our previous gold standard system.
We covered a ton of material in our class time so Mr. Coleman rewarded us by letting us finish Blood Diamond. I became very emotional at the end of the movie, but I tried to shield my tears from my classmates because from what I could tell, the boys sitting next to me weren’t crying. I really enjoyed the movie, but I’m disturbed by the horrific diamond wars in Africa.
Our group changed our presentation day to Thursday to give us more time to work on our project. We met in the SciLi at 4 PM to discuss our plans. Ellen didn’t show up because she was not feeling well, but Tomas, Johnny, Emily, and I were ready to work. We created a Google Doc PowerPoint presentation so that we can work on it individually. I’m almost finished with my section titled “China’s Economy: why do we care?” I still have to complete the evidence page after everyone gives me their sources. I am quite happy with the progress we’re making. We’ll be ready to present on Thursday.
To Brown Session 2: welcome to Providence!