Macroeconomics

In the Elements of Macroeconomics unit, we will be studying economics from a larger scope.  We will look at overall production in our nation, the business cycle, unemployment/poverty and inflation/deflation.  We will gain an understanding of macroeconomics through readings, activities and current events.

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**All resources for this unit can be found in the folder in the locker titled Macroeconomics**

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Introduction to GDP - Due February 25, 2009

1.  Open the PDF titled How is Our Economy Doing.
2. Read the document.
3.  Answer the questions at the end - remember, you need to READ in order to answer the questions!
4. Submit your answers to the drop box.

Economic Growth - Due February 27, 2009

1.  Watch the video titled The Global Divide.
2. Download and print the document titled Economic Growth.  
3. Complete the assignments about GDP, Per Capita Income and Distribution of Income.
4. Turn in a hardcopy of the completed worksheet.

Business Cycle - Due February 27, 2009

Read the following article about the business cycle - Library of Economics and Liberty: Business Cycle.

Write a paragraph about the business cycle.  Your paragraph needs to be in your own words and include an introduction, body and conclusion.  Be sure to include the following key concepts:

• definition of business cycle
• causes of business cycles
• recession/desprssion

Submit your paragraph in the drop box.

Unemployment - Due March 3, 2009

Part 1:  Using the following website, answer the questions below.  Submit your answers in the drop box.

• United States Department of Labor - Frequently Asked Questions

1. What is the CPS and what does it measure?
2. Define employed.
3. Define unemployed.
4. Who makes up the labor force?
5. In 2008, about how many people were employed? Unemployed?
   

Part 2:  Answer the intro questions, watch the video and then answer questions 1-4 that follow.  Submit all answers in the drop box.

Intro Questions:

1. What do you think is the the average monthly income for a doctor, a teacher, a musician, a scientist, a waiter, a store manager?
2. What is health insurance?  How much do you think it costs per month?

Watch this PBS Video and answer the questions that follow.

1. Do you think that healthcare and health insurance are basic rights? Why or why not?
2. All of these people had jobs and paid taxes and now are laid off and need help from the government, does that change your perception of who is on Medicaid? Why?
3. Not all countries have insurance provided by employers. Research some other country healthcare systems which systems do you think are better? Why?
4. At least two of the interviewees said they had to give up their own medicine for their children. Can you think of a way to improve that?

Inflation - Due March 5, 2009

You will be using a handful of different websites to answer questions about inflation.  You will be submitting your answers in the drop box. (Assignment adapted from EconEdLink.com)

Part 1:  http://www.socialstudieshelp.com/Eco_Inflation.htm

1. What is inflation?
2. To measure the price level, economists select a variety of goods and services to construct a price index such as the __________  __________  __________ (CPI).
3. Describe two reasons for the causes of inflation.
4. What types of people are most negatively affected by inflation and the depreciation of the dollar?
5. __________ are generally hurt more than __________ during long inflationary periods, which means loans made earlier are repaid later in inflated dollars.

Part 2: http://www.bls.gov/cpi/cpifaq.htm#Question_7

1. List 5 goods and services that the CPI covers.
2. List 2 things that are not included in the CPI.

Part 3:  http://www.bized.co.uk/virtual/bank/economics/mpol/inflation/causes/theories1.htm

1. In your own words, explain demand-pull inflation.

Part 4:  http://www.bized.co.uk/virtual/bank/economics/mpol/inflation/causes/theories2.htm

1. In your own words, explain cost-push inflation.

Part 5:  Answer the following multiple choice questions.

1. The cost-push theory of inflation states that:
   a. Inflation occurs because there is not enough money in the economy.
   b. Inflation occurs because the costs of producing goods and services go up and are then passed along to the consumer.
   c. Inflation occurs because there is too much money in the economy.
2. Which of the following best describes the demand-pull theory of inflation?
   a. Inflation occurs because there is not enough money in the economy.
   b. Inflation occurs because the costs of producing goods and services go up and are then passed along to the consumer.
   c. Inflation occurs because there is too much money in the economy.
3. Purchasing power describes what happens to our ability to buy goods and services when prices...
   a. fall due to inflation.
   b. rise due to inflation.
   c. rise due to deflation.
4. True or False? The market basket is a combination of goods and services that the BLS uses to track changes in the general price level. These are items that an average family will spend money on in a given month.
   a. True
   b. False

Poverty - Due March 9, 2009

Using the following websites as a resources as well as the Internet, answer the following questions.  Please submit your answers to the drop box before class begins in the 9th.

Possible sites:

• http://www.census.gov/hhes/www/poverty/poverty.html
• http://aspe.hhs.gov/POVERTY/
• http://travel.state.gov/visa/immigrants/info/info_1327.html

Questions:

1. In your own words, define poverty threshold.
2. What is the poverty threshold for a family of 4 (2 adults 2 children) in the United States?  For a family of 2 (one adult one child) For a family of 1 over the age of 65?
3. In  your own words, define poverty rate.
4. What is the poverty rate in the United States?
5. What is the "income gap"?
6. In what ways could the United States reduce the income gap and reduce poverty?