Eisenhower High School Economics
Archive for June, 2012
Monday 6/11/2012
Jun 11th
Thursday 6/7/2012
Jun 7th
- CHAPTER 14 TEST FRIDAY-20 questions
- Discussed Ben Bernanke speaking before Congress today.
- Bernanke: No easing for now, but possible if growth slows article
- Lawmakers to call for Fed action after May jobs report article
- Picking the QE3 trade article
- Bernanke: No hints on QE3 from Federal Reserve article
- Fed’s Yellen sees possibility of more stimulus article
- Mortgage rates sink to new record low article
- Stocks gain as China stimulates economy article
- Federal Open Market Committee Meeting Policy Information & Recommendations assignment
- FOMC Bluebooks & Greenbooks to used to complete the assignment
- Collected assignment at the end of the hour.
Wednesday 6/6/2012
Jun 6th
- CHAPTER 14 TEST FRIDAY
- Finish: Watch Fed Chairman Bernanke on the Economy interview on 60 Minutes
- Finish: Complete the Fed Chairman Bernanke on the Economy interview on 60 Minutes video guide as we watch the video.
- This assignment was collected after answering questions.
- Pass out Federal Open Market Committee press release from April 2012
- Discuss the importance of wording of this document
- Watch Ben Bernanke press conference and complete FOMC video guide as we watch the video
- Turn in press conference video guide
- Use computers in class to play You Are the Fed Activity game
- Complete You Are the Fed Activity assignment as you play the game and turn in at end of the hour.
Tuesday 6/5/2012
Jun 5th
- Quick review of the text discussed yesterday.
- Should the U.S. Be Borrowing More? article
- Lower interest rates means the price of money is low=good time to borrow.
- Explanation of the structure of the Federal Reserve
- Review sheet for Monetary Policy tools of the Federal Reserve
- Money Creation worksheet
- Completed with a $1000 deposit
- Discussed growth of the money supply & role of the Federal Reserve
- Watch In Plain English: Making Sense of the Federal Reserve
- Complete the In Plain English: Making Sense of the Federal Reserve video guide as we watch the video
- Watch Fed Chairman Bernanke on the Economy interview on 60 Minutes
- Complete the Fed Chairman Bernanke on the Economy interview on 60 Minutes video guide as we watch the video
Monday 6/4/2012
Jun 4th
- Passed out Chapter 14 Text
- Test will be on Friday
- Defined Fiscal & Monetary policy
- Classical Economists (little government involvement) versus John Maynard Keynes (government is needed in the economy to boost demand)
- Keynes Fiscal policy to boost demand
- Cut taxes
- Boost government spending
- Temporary deficit spending is ok
- FDR’s Economic Bill of Rights
- Monetary policy
- Milton Freidman says Great Depression happened due to tight monetary policy by the Federal Reserve, not because of sluggish demand.
- 1979, Fed Chair Paul Volcker sets out to slow the growth of the money supply to help control inflation.
- Both fiscal & monetary policy are useful in managing the economy.
- Goals of policies:
- Low unemployment
- Stable prices (control inflation)
- Economic growth (measured by GDP growth)
- Expansionary Fiscal Policy
- increase government spending
- cutting taxes
- Contractionary Fiscal Policy
- Cut spending
- Increase Taxes
- Demand Side Economists
- stimulate demand by cutting individual income taxes
- Supply-side economists
- Cutting taxes on businesses and high income tax payers
- Stand up for Kids Not CEO’s commercial
- Multiplier effect
- Automatic Stabilizers such as unemployment and welfare are used by government to boost demand
