Week 12 · Readings & resources

Week 12 — Readings & Resources

Principles of Macroeconomics Free sample edition

Your primary reading is Chapter 12 (in this module). Everything below is the optional, go-deeper layer — pick what helps, skip the rest.

How to use this page

This page has 10 items (4 readings and 6 videos). Allow 70–87 minutes for everything. Each group points back to the matching chapter section and class-session segment, so use the full menu when you want more practice, or take the quick path below.

Every video here has captions: turn them on with the CC button in the player. The chapter covers the same ideas in text.

Pick-one quick path (16–20 min total)

① How do jobs and prices trade off?

Chapter 12, Section “Read the trade-off forwards: a slide along the curve” · Session 1, Segment 2, “Reading the trade-off forwards” · Remember: along one short-run curve, lower unemployment comes with higher inflation, and a slide between two points is a movement along the curve.

The Phillips Curve- Macro Topic 5.2 — Jacob Clifford — a quick sketch of the short-run and long-run Phillips curves side by side; draw along, put unemployment on the horizontal axis and inflation on the vertical one, and say each move forwards: lower unemployment, higher inflation. (video, 6 min) (captions: automatic)
Macro 5.2 - Phillips Curve — ReviewEcon — a review-style walk through the short-run trade-off, the vertical long-run curve, and how the Phillips curve lines up with the aggregate demand and supply diagram; pause at each graph and name whether the economy moved along the curve or the curve itself shifted. (video, 9 min) (captions: automatic)
Is There a Stable Phillips Curve After All? — Federal Reserve Bank of Minneapolis — a policy paper asking whether the trade-off is steady enough for policymakers to lean on; read the introduction and the summary, skip the model and the tables, and treat its answer as one research view, not a settled verdict. (reading, 8–12 min)

② Why doesn't the trade-off last?

Chapter 12, Section “Shift the short-run curve: expected inflation catches up” · Session 1, Segment 4, “Expectations shift the curve” · Remember: when people come to expect more inflation, they build it into wages and prices, the short-run curve shifts up, and unemployment drifts back to the natural rate.

What Causes Inflation? — Federal Reserve Bank of Cleveland — a central bank's plain-language guide; read the section on what inflation expectations are and how they affect inflation, including its wage-price spiral, and match it to the line cook's raise in the chapter. Use it while completing the Week-12 module overview. (reading, 8–12 min)
The Phillips Curve - Explained — Economics Understood — an introductory tour from the curve's origins through the short-run trade-off, the long-run curve, and the evidence that challenged the simple version; when it reaches expectations, say in your own words why the short-run curve is not a permanent menu. (video, 10 min) (captions: automatic)

③ What does more money do in the long run?

Chapter 12, Section “Test long-run neutrality: more money, same real output” · Session 2, Segment 6, “More money, same output” · Remember: with velocity and real output fixed, a 10% rise in the money supply is a 10% rise in the price level.

Money and Inflation Explained: Feducation Video Series — Federal Reserve Bank of St. Louis — a central bank's short lesson on money and inflation, with its full transcript on the page; read the part that walks through the money supply, velocity, the price level, and output, and check each letter against the chapter's quantity equation. This builds on Week 9's work with money, banking, and monetary policy. (reading, 8–12 min)
Macro 5.3 - Money Growth and Inflation - Monetary Equation of Exchange & Quantity Theory of Money — ReviewEcon — a review-style lesson on the equation of exchange, the quantity theory, and what faster money growth does to inflation; as you watch, note which letters it holds fixed and which one moves when money grows. (video, 7 min) (captions: automatic)
Macro Minute -- The Velocity of Money — You Will Love Economics — a two-minute definition of velocity as how many times a dollar is spent in a year; compare it with the street-fair tokens in the chapter. (video, 2 min) (captions: automatic)
Quantity Theory of Money - Macro 2.5 — Jacob Clifford — a very short recap of the equation and what happens to prices when money grows and velocity and output hold still; use it as a last check before the quiz. (video, 2 min) (captions: automatic)

Optional one-stop reference (free online reference)

Phillips Curve, Concise Encyclopedia of Economics — Econlib — an encyclopedia entry on the curve's history, the natural-rate argument, and the short-run and long-run curves; read through the section on expectations and the natural rate, and skip the regression figures near the end. (reading, 10–15 min)

Heads-up (links rot): these point to outside sites that occasionally move or rename pages. If a link ever fails, tell your instructor and use the reference above in the meantime.

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