Time: 4weeks
Standards/objectives
SSEMA1 The student will illustrate the means by which economic activity is measured. a. Explain that overall levels of income, employment, and prices are determined by the spending and production decisions of households, businesses, government, and net exports. b. Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index
(CPI), inflation, stagflation, and aggregate supply and aggregate demand. c. Explain how economic growth, inflation, and unemployment are calculated. d. Identify structural, cyclical, and frictional unemployment. e. Define the stages of the business cycle, as well as recession and depression. f. Describe the difference between the national debt and government deficits.
SSEMA2 The student will explain the role and functions of the Federal Reserve System. a. Describe the organization of the Federal Reserve System. b. Define monetary policy. c. Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment, and economic growth.
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth. a. Define fiscal policy. b. Explain the government’s taxing and spending decisions.
Unit 3 Study Guide
Chapter 10 section 2,
I CAN:
1. Explain how the federal budget is established.
2.
3.
Describe the parts of the federal budget.
List the five largest components of federal government spending.
Chapter 10 section 4
I CAN:
1. Explain how the federal deficit is related to the federal debt.
2.
3.
4.
What is the impact of the federal debt on the economy?
Describe past attempts to eliminate the federal debt.
Explain and describe entitlements.
Chapter 13, Section 1: Can I:
1.
Define Gross Domestic Product (GDP)?
2.
Explain why the GDP is important?
3.
Identify what is NOT counted in GDP and give an example of each?
4.
Explain the limitations of GDP?
5.
Define Gross National Product (GNP)?
6.
Write out the equation for calculating GDP?
7.
If C= 500, G= 100, I= 100, X= 100, and M=200, what is the GDP?
8.
Identify the MOST important factor affecting consumer spending?
Chapter 13, Section 2: Can I:
1.
Define inflation?
2.
Explain what a price index is?
3.
Define base year?
4.
Define market basket?
5.
Define CPI?
6.
Distinguish between real and current (nominal) GDP?
Chapter 13, Section 4: Can I:
1. Explain why real GDP per capita is the best way to measure long term growth in a country?
2. Define standard of living?

3. Explain why productivity is essential to producing economic growth?
4.
5.
Explain why productivity causes wages to increase?
What happens when a nation encourages entrepreneurship?
Chapter 14, Section 1: Can I:
1.
Identify the two phases of the business cycle?
2.
Define peak and trough in the business cycle?
3.
Explain what would be happening with the following in an expansion AND a recession?
-real GDP
-unemployment
-inflation
4. Explain why our economy goes through a business cycle? (five reasons)
Chapter 14, Section 2: Can I:
1.
Define unemployment rate?
2.
Explain the limitations of the unemployment rate?
3.
Define the following types of unemployment and give an example of each?
-frictional
-seasonal
-cyclical
-structural
-technological
4. Identify the unemployment rate at “full employment?”
Chapter 14, Section 3: Can I:
1.
Identify the causes of inflation?
2.
Explain the dangers of deflation?
3.
Identify the consequences of inflation?
Chapter 15, section 1:
1. What is the purpose of the Federal Reserve?
2. Define:
3.
4.
Member bank, bank holding company, regulation Z currency, coins
Describe the Federal Reserve System.
Describe eight areas the Federal Reserve has responsibility.
Chapter 15, section 2:
1. Explain monetary policy.
2. Explain how fractional reserves are used.
Describe the relationship between the reserve requirement, reserves, and the size of the money supply.
3. Explain the three major tools of monetary policy.