TCSS ECONOMICS: Unit 3 MACROECONOMICS part 2
Unit Essential Question: How do the actions of the Federal Reserve and government influence the economic growth, price stability, and full
employment of an economy?
TIME FRAME: 25 Days
Capstone Requirements During This Unit
th
th
February 9 – 10
Provide students with class time to work on/complete Product
Unit Resources:
I do –
Teacher notes p.69-75
We do –
Combining Macro on business cycle
Monetary v Fiscal
3 steps to Macro
You do –
Unit 3 part 2 map
Unit 3 part 2 standards questions
Unit 3 part 2 practice assessment questions
Macro culminating differentiation project
Concept 1: Federal Reserve (2 days) and the Monetary Policy (7 days)
SSEMA2A: Describe the organization of the Federal Reserve System.
SSEMA2B: Define monetary policy.
SSEMA2C: Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment, and economic growth.
Lesson Essential Question: How does the Federal Reserve System promote steady economic growth with price stability and full employment?
Enduring Understanding/Theme: Scarcity / Individuals, Groups, and Institutions
KNOW
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Federal Reserve (Fed)
Federal Open Market Committee
Board of Governors
District Bank, member banks
Money supply
Monetary policy
Easy money / Tight Money
Government securities (bonds)
Discount rate
Required Reserve Ratio (Reserve
Requirement)
Interest Rate (prime rate)
UNDERSTAND
 Connection between Easy and Tight money
policies and phase of business cycle
 How Fed is organized/structure
 Types of policies (Easy and Tight)
 Tools used in each policy and effect on
money supply
 Correlation between price stability,
employment, and growth with each money
policy.
 Role and functions of the Federal Reserve
System
BE ABLE TO DO (DOK 2+)
 Explain the role and functions of the
Federal Reserve System
 Interpret the effect of each tool on the
money supply
 Adapt the monetary policy through the use
of various tools in order to promote
economic growth, price stability, and full
employment
 Summarize the organization of the Fed
 Infer which tool would be used in each
phase of the business cycle
 Show which specific tool would be used in
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particular scenarios
Describe the effect of government use of
fiscal policy on individual spending
decisions
Sample Formative Assessments:
Which component of the Federal Reserve system holds the most power in regards to day to day monetary policy?
A. The Federal Open Market Committee
B. The Board of governors
C. The 12 District banks
D. Congress and the President
Janet Yellen has met with the Federal Open Market Committee and discovered the need to decrease interest rates. What would be the impact of this decision on
employment and growth?
A. Increased employment and encourage growth through the Easy money policy
B. Increased employment and control growth through the Tight money policy
C. Decreased employment and encourage growth through the Easy money policy
D. Increased employment and control growth through the Tight money policy
When the nation is experiencing signals of impending inflation, which actions would the Federal Reserve most likely implement?
Required Reserve
Government Securities
A. Increase
Sell
B. Increase
Buy
C. Decrease
Sell
D. Decrease
Buy
RESOURCES:
I do –
We do –
You do –
federal reserve --- http://prezi.com/faagt7h5wrw/the-federal-reserve-system/
monetary policy --- http://prezi.com/1cmytazqxqd/monetary-policy/
Focus Lesson 20
Monetary Policy practice questions
Easy Tight Monetary policy matching
Monetary policy Webquest
Federal Reserve reading
Federal Reserve Monetary policy PowerPoint
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Concept 2: Budget and Taxes (2 days)
SSEMA1F: Describe the difference between the national debt and government deficits.
SSEPF3B: Define progressive, regressive, and proportional taxes.
SSEPF3C: Explain how an increase in sales tax affects different income groups.
Lesson Essential Question: How does the government’s taxing and spending decisions effect households and businesses?
Enduring Understanding/Theme: Individuals, Groups, and Institutions / Distribution of Power
KNOW
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Budget deficit
Budget surplus
National debt
Progressive tax
Regressive tax
Proportional tax
Income tax
Sales tax
Social Security/FICA
UNDERSTAND
 Difference between budget deficit and
budget surplus
 Debt v. deficit
 Difference between types of taxes and
examples of each
 Effect of taxes on different income levels
 Connection between government
actions/spending and circular flow model
BE ABLE TO DO (DOK 2+)
 Explain the difference between budget
deficit and budget surplus
 Describe how a budget deficit impacts the
national debt
 Compare the different types of taxes
 Cite evidence on why specific examples
correlate to a type of tax
 Categorize why specific tax is used in
different scenarios/charts/tax tables
 Connect to deficit to government
regulation and public goods
 Explain how sales tax affects income groups
differently.
Sample Formative Assessments:
If a nation currently has a budget deficit, their income is not covering the cost of running their country. If this budget is not revised, what could be a possible
result of this situation?
a) A budget surplus
b) A mounting debt
c) A balanced budget
d) Discretionary fiscal policy
A budget surplus means that
A. the Government has taken in more money than it spent.
B. the Government has spent more money than the Fed.
C. the Government has spent more money than it took in.
D. the Fed has spent more money than the government.
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Income taxes affect aggregate demand
a. A by changing investment spending.
b. by changing consumption.
c. by changing net exports.
d. through government spending.
If Troup County instituted an increased sales tax for ESPLOST, who would be more deeply affected, John who is a garbage man or Ted who is a CEO?
A. John because he buys more stuff than Ted
B. Ted because he buys more expensive stuff than John
C. John because the increase takes a larger percentage of his income
D. Ted because the increase will make everything he buys more expensive
RESOURCES:
I do –
We do –
You do –
Federal Budget --http://prezi.com/z3ddlhecg8mp/the-federalbudget/
Tax Talk
Taxes Practice
Tax talk Situation
taxes --- http://prezi.com/m0d1nfg0mxzy/taxes/
Taxes Lesson outline
Where Does the Money go? https://www.nationalpriorities.org/budgetbasics/federal-budget-101/
Concept 3: Fiscal Policy (8 days)
SSEMA3A: Define fiscal policy.
SSEMA3B: Explain the government’s taxing and spending decisions.
Lesson Essential Question: How does the government use fiscal policy to promote price stability, full employment, and economic growth?
Enduring Understanding/Themes: Individuals, Groups, and Institutions / Scarcity / Distribution of Power
KNOW
 Fiscal policy
 Expansionary policy
 Contractionary/Restrictive policy
UNDERSTAND
 How government uses spending and taxes
 Connection between Expansionary and
Contractionary fiscal policies and phase of
BE ABLE TO DO (DOK 2+)
 Justify a change in taxing/spending based
on economic growth or decline.
 Interpret the effect of each tool on the
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Tools (government spending and taxes)
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business cycle
Types of policies (Expansionary and
Contractionary)
Tools used in each policy and effect on
national budget or national debt
(deficit/surplus)
Correlation between price stability,
employment, and growth with each fiscal
policy.
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government budget/national debt/levels of
spending
Describe the effect of government use of
fiscal policy on individual spending
decisions
Adapt the fiscal policy through the use of
various tools in order to promote economic
growth, price stability, and full employment
Infer which tool would be used in each
phase of the business cycle
Show which specific tool would be used in
particular scenarios
Sample Formative Assessments:
If GDP is raising and the unemployment rate is decreasing, what actions would Monetary Policy and Fiscal Policy take to try to fix this economic
situation?
Federal Reserve
Fiscal Policy
a. raise the Discount rate
lower taxes
b. lower the Federal Funds rate
raise taxes
c. lower the Discount rate
decrease spending
d. raise the Federal Funds rate
decrease spending
If the Federal Reserve is trying to promote economic stability by lowering the Federal Funds rate, what action would Fiscal Policy take?
A. Lowering taxes
B. Decreasing spending
C. Increasing taxes
D. Decreasing borrowing
RESOURCES:
I do –
We do –
You do –
fiscal policy --http://prezi.com/mgbare3aawd8/fiscal-policy/
Fiscal review card game scenarios
Fiscal review card game 2
Fiscal Policy practice test questions
Fiscal Policy tools analysis
(also see powerpoint in taxes “Fiscal-Taxes”)
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