Focus on Economic Data: The Federal Reserve System and Monetary Policy - January 2002

Grade Levels

10th Grade, 11th Grade, 12th Grade, 9th Grade

Course, Subject

Economics

Related Academic Standards

6.2.9.E 6.2.9.E

Analyze the characteristics of economic expansion, recession, and depression.

6.2.12.E 6.2.12.E

Evaluate the health of an economy (local, regional, national, global) using economic indicators.

6.3.9.B 6.3.9.B

Examine how and why the government acts to regulate and stabilize the state and national economy.

6.3.12.B 6.3.12.B

Assess the government's role in regulating and stabilizing the state and national economy.

Expand

Big Ideas

All economic systems must answer what, and how, goods and services will be produced, and who will consume those goods and services.

Economic decision-making by entities and individuals impact others locally, regionally, and around the globe.

The interaction of buyers and sellers determines prices and quantities exchanged, except when influenced by governmental policies.
Concepts

A nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government agencies, and others in the economy.

Governments may implement progressive, proportional, or regressive tax systems.

Historical examples of expansion, recession, and depression, along with current economic indicators, offer analysis of economic performance and prediction of performance.

The Federal government budgetary policy and the Federal Reserve System's monetary policy influence the overall levels of employment, output, and prices.

The Federal government budgetary policy and the Federal Reserve System's monetary policy influence the overall levels of employment, output, and prices.

Trade occurs only when all participating parties expect to gain. This voluntary exchange is influenced by comparative advantage, competition, productivity, and trade barriers.
Competencies

Assess the strengths and weaknesses of the regional, national, and international economy.

Explain how the gross domestic product can be used to describe a country's economic output over time, comparing outputs from year to year.

Explain the difference between the budget deficit and national debt.

Identify and analyze forces that can change price.

Description

This lesson is intended to guide students and teachers through an analysis of the actions the Federal Reserve began to take last year in an effort to strengthen the economy. An understanding of monetary policy in action is fundamental to developing a thorough understanding of macroeconomics and the U.S. economy.

Web-based Resource

Access this resource at:

Focus on Economic Data: The Federal Reserve System and Monetary Policy - January 2002

Focus on Economic Data: The Federal Reserve System and Monetary Policy - January 2002