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Lesson 18: Economic Ups and Downs
Focus: High School Economics
News reports about the economy often refer to data concerning economic growth, recessions, inflation, and unemployment. Students (and adults) should understand these data and how they both reflect and affect peoples' and companies' decisions to buy, save, invest, and produce. These data or measures of national economic performance have also become major topics in national elections and political...
Grade(s): 9-12
Concepts: Business cycles, Gross domestic product, Unemployment, Consumer price index, Recession, Inflation, Economic growth, Fiscal policy,

Unit 3: Lesson 8 - To What Extent Do Economic Conditions Determine the Outcome of Presidential Elections?
Civics and Government: Focus on Economics
Students consider how economic performance is evaluated and are introduced to four major indicators of macroeconomic performance: growth rate of real income, unemployment rate, inflation rate, misery index. They complete a worksheet comparing changes in these indicators with the outcomes of U.S. presidential elections from 1960 to 1992 and examine the influence of economic conditions of the likel...
Grade(s): 9-12
Concepts: Real disposable personal income, Unemployment, Inflation, Misery index,

Unit 7: Lesson 3 - Boom and Bust in the 1830s
United States History: Eyes on the Economy - Through the Civil War
Students read Activity 1 and use the Tables in Activity 1 to answer questions. Following the discovery that the increase in the money supply, 1834-1837, was caused primarily by increases in specie, students read Activity 2, which describes the causes of that specie increase and the causes of the Panic of 1837.
Grade(s): 9-12
Concepts: Money supply, Specie, Reserves, Inflation, Depression,

Unit 6: Lesson 38 - Aggregate Demand and Aggregate Supply
Capstone: Exemplary Lessons for High School Economics - Teacher's Guide
Students build their understanding of aggregate demand and aggregate supply. They use their new skills to analyze the effects of events and government monetary and fiscal policies on inflation, unemployment, and economic growth. In the first two Activities, students identify different components of AD and AS and the factors that shift AD and AS. In the last two Activities, students use AD and A...
Grade(s): 9-12
Concepts: Aggregate demand and shifting, Aggregate supply and shifting, Fiscal policy, Macroeconomic equilibrium, Monetary policy, Price level, Real gross domestic product

Unit 3: Lesson 6 - How Can Changes in the Federal Government's Budget Stabilize the Economy?
Civics and Government: Focus on Economics
The teacher discusses with the class how a market economy like that of the United States goes through the Business Cycle of unstable swings in economic activity. The students then write and perform a three-act skit which illustrates how the level of income and spending in an economy can fall, and how intentional fiscal policy changes in the spending and taxing levels of government result in a mul...
Grade(s): 9-12
Concepts: Income-spending chain, Multiplier effects, Business cycle, Unemployment, Inflation, Fiscal policy,

Lesson 33: Changing Economic Conditions Affect Entrepreneurs
Entrepreneurship in the U.S. Economy: Teacher Resource Manual
In this lesson, students will define inflation, recession, and business cycle; identify leading economic indicators; state implication of changes in certain leading economic indicators for hypothetical entrepreneurial enterprises; analyze effects of unemployment and inflation on entrepreneurs; analyze effects of recession and expansion on different sectors of the economy; predict effects of govern...
Grade(s): 9-12
Concepts: Unemployment, Recession, Inflation, Depression, Expansion, Business Cycle, Leading economic indicators

Unit 7: Lesson 4 - The New Deal
United States History: Eyes on the Economy - Through the 20th Century
Using a "bathtub" model, the teacher that government spending raises aggregate demand and that taxes lower aggregate demand. Working in groups, students complete on worksheet about New Deal policies and another about other forces affecting aggregate demand during the Great Depression. Students write brief answers to three essay questions.
Grade(s): 9-12
Concepts: Aggregate demand, Depression, Government spending, Taxation, Inflation,

Lesson 13: The Working World
Master Curriculum Guides in Economics: Teaching Strategies - 3-4
Human capital consists of the skills, knowledge, and other factors, such as health, that improve an individual's ability to produce goods and services. One reason people earn different incomes for different jobs is that they differ in the quantity and quality of their human capital.
Grade(s): 3-5
Concepts: Work, Employment, Human capital, Unemployment,

Unit 3: Lesson 11 - What Can the Government Do About Unemployment?
Civics and Government: Focus on Economics
An understanding of the three types of unemployment and the various policies government can pursue to alleviate unemployment is developed. Students categorize examples of unemployed workers as structural, cyclical, or frictional unemployment.
Grade(s): 9-12
Concepts: Unemployment, Role of government,

Lesson 4 - Constructing and Using a Consumer Price Index
Mathematics & Economics: Connections for Life - 6-8
In this lesson, the students look at data for baby-sitting wages (a price for labor) and the price of movie tickets over time. They learn about the Consumer Price Index and how to construct a price index. They learn how a price index is used to compare incomes and prices of goods and services from year to year. They define nominal and real prices and wages.
Grade(s): 6-8
Concepts: Inflation, Price, Wage

Lesson 8: Central Banking With or Without Central Planning
Focus: Economic Systems
Students participate in an auction to see how large increases in the money supply can cause inflation. Then they examine data on the relationship between inflation and growth rates in the money supply in different countries. That leads to a discussion of central banks and monetary policy. Finally, students plot a scatter diagram to investigate the relationship between the political independence...
Grade(s): 9-12
Concepts: Inflation, Monetary Policy, Central Bank

Lesson 11 - Money and Inflation
Economics in Action: 14 Greatest Hits for Teaching High School Economics
Students observe a simple demonstration to determine the functions that money performs. They next participate in two rounds of an auction illustrating how increases in the money supply lead to inflation. They view an active demonstration of the equation MV = PQ to understand the relationship among the variables and the intent of monetary policy. This lesson may be used as either an introduction to...
Grade(s): 9-12
Concepts: Federal Reserve System, Functions of money, Inflation, Monetary policy, Money, MV = PQ

Macroeconomics Unit 3: Lesson 5 - Short-Run Equilibrium
Advanced Placement Economics: Teacher Resource Manual
In this lesson, the focus is on the short-run equilibrium between aggregate supply and demand, on the changes in output and price level if aggregate supply or aggregate demand changes, and on the students' ability to explain correctly why the curve shifted in a specific direction. The relationship between the simple Keynesian model and the aggregate supply-aggregate demand model is explored. Activ...
Grade(s): 9-12
Concepts: Macroeconomic equilibrium, Equilibrium price level, Aggregate demand, Aggregate supply, Keynesian model, Full employment,

Lesson 20: Aggregate Supply and Demand: The Sum of Their Parts, and More
Focus: High School Economics
Over the last two decades, the most dramatic pedagogical innovation in teaching introductory economics has been the use of aggregate supply and demand curves to illustrate key macroeconomic concepts and policy issues. There is still some debate about this development among university economists, but because these curves look and operate so much like the standard supply and demand curves featured ...
Grade(s): 9-12
Concepts: Aggregate demand, Aggregate supply, Gross domestic product, Fiscal policy, Monetary policy,

Macroeconomics Unit 2: Lesson 2 - Macroeconomic Goals and GDP
Advanced Placement Economics: Teacher Resource Manual
The goals of U.S. macroeconomic policy makers are captured in two laws: the Employment Act of 1946 and the Full Employment and Balanced Growth Act of 1978 (Humphrey-Hawkins Act). The 1946 law committed the federal government to maximize employment and economic growth, and maintain a stable price level. The 1978 law went further and committed the government to reach an unemployment rate of 4 percen...
Grade(s): 9-12
Concepts: Full employment, Inflation, Economic growth,

Unit 3: Lesson 7 - Who Should Control the Money Supply - the U.S. Congress or the Federal Reserve?
Civics and Government: Focus on Economics
Students learn that the basic U.S. money supply consists of currency in circulation and checking account balances in banks. They learn that the money supply increases when banks make loans, and that by controlling bank lending activity, the Federal Reserve System (an independent regulatory agency established by Congress in 1913) attempts to control the supply of money in the economy. The student...
Grade(s): 9-12
Concepts: Money supply, Monetary policy, Unemployment, Inflation,

Lesson 10: Macroeconomic Stabilization Policies and Institutions
Focus: Institutions and Markets
This lesson begins by reviewing the discovery and adoption of Keynesian fiscal policies in the United States and other nations following World War II. Students then participate in several exercises to ascertain their understanding of appropriate demand-side tools of fiscal policy, which is conducted by national legislative and executive branches of government, and tools of monetary policy, which ...
Grade(s): 9-12
Concepts: Unemployment, Inflation, Fiscal policy, Automatic stabilizers, Monetary policy, Central banks, Discount rate, Reserve requirement, Open market operations,

Macroeconomics Unit 5: Lesson 3 - Phillips Curve and Stabilization Policy
Advanced Placement Economics: Teacher Resource Manual
The Phillips curve is an empirical relationship found by A.W. Phillips that shows the relationship between the unemployment rate and the rate at which wages change. He discovered that changes in wages were inversely related to the unemployment rate. Subsequent research established the same relationship between inflation and unemployment. During the 1960s, many economists and policy makers thought ...
Grade(s): 9-12
Concepts: Phillips curve, Unemployment, Inflation,

Unit 8: Lesson 1 - Why Did the South Secede?
United States History: Eyes on the Economy - Through the Civil War
Students examine information in a series of visuals about the strengths and weaknesses of the South and North on the eve of the Civil War. Next, they examine alternatives for eliminating slavery and discuss the expected costs and benefits of fighting the Civil War.
Grade(s): 9-12
Concepts: Alternatives, Costs, Benefits,

Unit 6: Lesson 37 - Can Government Manage the National Economy?
Capstone: Exemplary Lessons for High School Economics - Teacher's Guide
Although economists agree much more often than they disagree, the opinions of prominent economists on economic policy often conflict. This lesson seeks to clarify why economists disagree. Understanding the reasons for disagreement among experts may help students to make their own judgments about economic policies. The lesson concludes by having students compare and contrast the major macroecono...
Grade(s): 9-12
Concepts: Aggregate demand, Aggregate supply, Assumptions, Fiscal policy, Keynesian theory, Monetarist theory, Monetary policy, New Classical theory, Rational Expectations theory

ONLINE LESSONS:

online Phillips Curve
This lesson explores the relationship of unemployment to inflation in the 1960s and after. Students will discover the short-run trade-off between inflation and unemployment when unemployment is less than its natural rate. Students will learn how wage setters formed adaptive expectations about future inflation and included these in their wage demands. At the conclusion of this lesson, students wil...
Grade(s): 9-12
Concepts: Aggregate Demand (AD),Aggregate Supply (AS),Inflation,Price,Unemployment,Unemployment Rate,Wage

online Economic Misery and Presidential Elections
The students examine economic data in order to predict the results of presidential elections.
Grade(s): 9-12
Concepts: Inflation,Real Gross Domestic Product (GDP),Unemployment

online Inflation and Unemployment - Is There a Correlation?
Students view a video on inflation and are introduced to the concept of unemployment. They then utilize Excel to create scatterplots, regression line equations, and correlation coefficients (r) for inflation and unemployment data from the 1980s, 1990s, and the 2000s. Students compare the results from the different time periods to determine the type of relationship and the strength of the correla...
Grade(s): 9-12
Concepts: Inflation,Unemployment

online When Gas was a Quarter!
Why do things cost so much more now than they used to? Students will find out about inflation in the United States.
Grade(s): 3-5
Concepts: Inflation,Consumer Price Index (CPI),Deflation,Unemployment

online Avatar, King of the Box Office?
On January 26, 2010, the film Avatar officially topped Titanic as the top-grossing film of all-time at the box office. However, the following day, Forbes.com published an article entitled Is Avatar Really King of the Box Office? The article explains how using calculations such as the Consumer Price Index (CPI), one can show how the film Gone With the Wind has grossed more when the value of the box...
Grade(s): 9-12
Concepts: Gross Domestic Product (GDP),Inflation,Consumer Price Index (CPI),Deflation,Real vs. Nominal,Causes of Inflation

online AP Macroeconomics - The Business Cycle: Introduction to Macroeconomic Indicators
Bell Ringer: Ask students how they think the economy is doing right now -- is it "up" or "down"? You can get an idea of where the economy is (i.e., the phase of the business cycle) at http://www.nber.org/cycles.html, the website of the the organization that dates U.S. business cycles. This lesson from [EEL-link id='5227' title='Advanced Placement Macroeconomics (4th Edition)' ...
Grade(s): 9-12
Concepts: Inflation,Unemployment,Macroeconomics,Recession,Depression,Business cycle

online CPI- The Crystal Ball
Governments and other financial organizations are constantly measuring trends in the economy to try to predict what will happen next. The ability to successfully economic trends has a profound effect on whether or not a business will make a profit or lose money. The economy also affects people's personal lives by helping them make good decisions: Is this a good time to buy a car? Refinance...
Grade(s): 9-12
Concepts: Inflation,Price,Deflation

online The Wizard of Oz Visits Japan
Deflationary conditions in the United States have not returned since the Great Depression. Instead, U.S. policymakers have frequently found it necessary to battle inflation over the past sixty years. While not a problem in America, concerns have been recently voiced about the economic effects of deflation in Japan. This EconomicsMinute examines (approximately one century after the public...
Grade(s): 9-12
Concepts: Inflation,Deflation

online The Road to Emerald City Is Paved with Good Intentions
'The Wizard of Oz' is perhaps the most popular film ever made. Generations of families have enjoyed this classic tale of Dorothy's struggle to return home from a faraway land. What is not well known, however, is that 'The Wonderful Wizard of Oz,' the 1900 book authored by L. Frank Baum (upon which the movie is based), is a thinly veiled economic and political commentary on the debate over 'sound m...
Grade(s): 9-12
Concepts: Inflation,Deflation

online What causes inflation?
This lesson explores different types of inflation and terms associated with this economic concept. You may have heard relatives talk about the good old days when a dollar would buy something. What happened to that dollar? Why won’t it buy as much as it did last month or last year? What happened is inflation. In this lesson you will examine the various causes and theories of inflation as...
Grade(s): 9-12
Concepts: Demand,Incentive,Inflation,Markets,Price,Supply

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