Unit 5 of 6

Factor Markets

In many ways, Unit 5 is a culmination and an extension of material that has been introduced previously. For example, in Units 3 and 4, students learned that public policy can affect the economy’s output, price level, and level of employment in the short run; in this unit, students will build on this understanding to examine the long-run implications of policy actions and the concept of economic growth. Similarly, in Unit 2 students were introduced to inflation and unemployment as economic indicators, and in Unit 3 they learned about the relationship between inflation and unemployment; in this unit, students explore how the Phillips curve model is used to represent this relationship in the short run and long run.