MACROECONOMICS CULMINATING ACTIVITY
Step 1: Read each scenario. Write what is happening inside the box.
Step 2: looking at each situation, darken in the section of the business
cycle that is being described.
M1
Reagan said tax cuts rock his
socks, so he and Congress lower
rates
Tax
Expansionary
Step 3: Draw the Business cycle on your poster (in color). Label each part of the business cycle
(trend line, peak, trough, expansion, contraction/recession, real GDP)
Step 4: cut out each of the scenarios and place them in the appropriate phase of the business cycle.
The President announced that the GDP for
2014 was $17,416.25 trillion and it is
predicted that the GDP for 2015 will reach
$18,286.69 trillion.
Action: ________________
The Bureau of Labor Statistics reported
that the inflation rate in the US in 1945
was 2.3% and by 1947 the inflation had
risen to 14.4%
Action: ___________________
The Fed has identified achievement of
“substantial improvement” in the labor
force as its main criterion for raising the
Discount rate.
Action: ______________
Policy: _______________
FOMC officials decided to announce they
would keep interest rates at 1% until
unemployment rates drop below 7%
Action: _______________
Policy: ________________
The House of Representatives laid down a Several policymakers recently have
bold budget proposal that aims to
suggested that they’re inclined to support
reshuffle the tax code in an effort to
more bond purchases since the economy
sharply lower rates.
has been stagnant at a -1% growth rate the
past quarter.
Action: ___________ policy:____________
Action: _______________
Policy: ________________
The 2016 budget included several
The Fed announced that it will raise the
initiatives to balance out the burden on all required reserve in order to match the
taxpayers. The proposal called for a change government’s decision to increase the
from a progressive tax to a proportional
excise tax from 48.29 cents per gallon of
tax for all citizens.
gasoline to 56.73 cents per gallon.
Action:______________
Policy: ______________
Action:____________policy:____________
Janet Yellen has often defended the Fed
Used to promote growth and increase GDP
actions against those who argue the policy
of keeping interest rates near 0% while
______________ money policy
ramping up bond purchases actually hurts
savers and risks inflation.
______________ fiscal policy
Action:_______________
Policy:________________
MACROECONOMICS CULMINATING ACTIVITY
Step 1: Read each scenario. Write what is happening inside the box.
Step 2: looking at each situation, darken in the section of the business
F1
Reagan said tax cuts rock his
socks, so he and Congress lower
rates
Tax
cycle that is being described.
Expansionary
Step 3: Draw the Business cycle on your poster (in color). Label each part of the business cycle
(trend line, peak, trough, expansion, contraction/recession, real GDP)
Step 4: cut out each of the scenarios and place them in the appropriate phase of the business cycle.
The President announced that the average
unemployment rate for 2010 was 9.6% and
the average unemployment rate for 2014
was 6.1%.
Action:___________________
The Bureau of Labor Statistics reported
that the inflation rate for 1948 was 8.1%
but by 1949 the inflation had dropped to 1.2%
Action: __________________
Even when the tax increases hit in January,
families may not notice the loss of income
in the short term by digging into savings
and continuing to spend on consumer
goods.
Action: _______________
Policy: ________________
The House of Representatives laid down a
bold but risky budget proposal that aims to
tame the national debt by cutting
Medicaid, food stamps, and other
entitlement programs.
Action: _________________
Policy: __________________
The 2016 Budget included job creation and
training initiatives. To offset the cost of
hiring more workers, the government
proposed a $1.5 trillion tax cut to all
corporations over 10 years.
Action:___________ policy: ____________
The plan Obama sent to Congress today
asks for more money for government jobs,
highways, bridges, schools, and student
aid.
Action: __________________
Policy: __________________
Economists say that the government needs
to tackle the deficit without cutting too
much government spending in order to
prevent an economic nose dive back into a
ditch.
Action: _______________
Policy: ________________
Janet Yellen has often defended the Fed
actions against those who argue the policy
of keeping interest rates near 0% while
ramping up bond purchases actually hurts
savers and risks inflation.
Action:__________ Policy: _____________
The Fed announced it will increase the
required reserve to match the
government’s increased spending
cuts on the federal immunization program
(8% or $50 million) due to the availability
of healthcare via the Affordable Care Act.
Action:_________policy:______________
To promote growth and increase
Aggregate demand
____________ monetary policy
____________ fiscal policy
MACROECONOMICS CULMINATING ACTIVITY
Step 1: Read each scenario. Write what is happening inside the box.
Step 2: looking at each situation, darken in the section of the business
cycle that is being described.
M2
Reagan said tax cuts rock his
socks, so he and Congress lower
rates
Tax
Expansionary
Step 3: Draw the Business cycle on your poster (in color). Label each part of the business cycle
(trend line, peak, trough, expansion, contraction/recession, real GDP)
Step 4: cut out each of the scenarios and place them in the appropriate phase of the business cycle.
The President announced that the GDP for
2008 was $14,720.30 trillion, which is
higher than the 2009 GDP of $14,417.90
trillion.
Action: _________________
The Fed has identified a “substantial
decline” in the labor force as its main
criterion for lowering the Required
Reserve for all member banks.
Action: __________policy: _____________
The Bureau of Labor Statistics reported
FOMC officials decided to announce they
that the inflation rate in the US in 1979
would keep interest rates at 10% until GDP
was 11.3% and by 1983 the inflation had
and inflationary pressures started to
dropped to 3.2%
stabilize.
Action: __________________
Action: ______________
Policy: _______________
The House of Representatives laid down a Several policymakers recently have
bold budget proposal that aims to
suggested that they’re inclined to support
reshuffle the tax code in an effort to
more bond sales since the economy has
sharply raise rates.
grown at an alarming 6% rate the past
quarter.
Action: _______________
Action: __________ policy: ____________
Policy: ________________
The 2016 budget included several
The Fed announced that it will raise the
initiatives to effectively balance the budget discount rate in order to match the
through a decrease in government
government’s decision to increase the
programs like NASA.
excise tax from 48.29 cents per gallon of
gasoline to 56.73 cents per gallon.
Action: ___________ policy: ___________
Action: ___________ policy: ___________
Janet Yellen has often defended the Fed
Used when GDP is decreasing too rapidly
actions against those who argue the policy
of keeping interest rates near 0% while
______________ money policy
ramping up bond purchases actually hurts
savers and risks inflation.
______________ fiscal policy
Action:___________ policy: ____________
MACROECONOMICS CULMINATING ACTIVITY
Step 1: Read each scenario. Write what is happening inside the box.
Step 2: looking at each situation, darken in the section of the business
Reagan said tax cuts rock his
socks, so he and Congress lower
rates
Tax
cycle that is being described.
F2
Expansionary
Step 3: Draw the Business cycle on your poster (in color). Label each part of the business cycle
(trend line, peak, trough, expansion, contraction/recession, real GDP)
Step 4: cut out each of the scenarios and place them in the appropriate phase of the business cycle.
The President announced that the
unemployment rate for October 2009 was
10%, up from 6.5% the previous October.
The FOMC officials decided to announce
that they would lower the discount rate
until unemployment dropped below 6%
(reaching full employment)
Action: _________________
The Bureau of Labor Statistics reported
that the inflation rate for 1915 was 1.0%
and the inflation rate for 1917 was 17.4%.
Economists say that the government needs
to tackle the deficit without increasing
taxes too much in order to prevent an
economic nose dive back into a ditch.
Action: __________________
Due to the decrease in food stamp
allocations for the 2016 fiscal year,
households may have to dig into their
savings in order to maintain the same level
of spending on consumer goods.
Janet Yellen defended the Fed actions that
the policy of keeping interest rates near
10% while ramping up bond sales does not
actually hurt the economy by encouraging
deflation.
Action: ___________ Policy: ___________
The House of Representatives laid down a
bold but risky budget proposal that will
ignore the $18 trillion national debt by
amplifying spending on Medicaid, Social
Security, and other entitlement programs.
Action:__________ policy: _____________
The Fed announced it will sell more bonds
to match the government’s increased
spending cuts on the federal immunization
program (8% or $50 million) due to the
availability of healthcare via the Affordable
Care Act.
Action: __________________
Policy: __________________
To promote growth and increase
aggregate supply
____________ monetary policy
Action: __________________
Policy: ___________________
The plan Obama sent to Congress today
asks for lower taxes for corporations, and
oil/natural gas/coal companies in order to
allow for job creation and increased
consumer spending
Action:___________ policy:____________
____________ fiscal policy