The test will cover economic ideologies (capitalism, socialism, communism) as well as micro and macro concepts. Be sure to review all notes (powerpoints, discussion & reading notes, and handouts). This test will be roughly 85 points.
Current Event: Janet Yellen Testifies Before Congress Tuesday, February 24
Understanding the Federal Reserve System: In Plain English
Monetary Policy Simulator – This website will help you better see the economic effects of increasing or decreasing the federal funds rate. To begin the simulator, click PLAY GAME. This site also provides a good review of the Fed’s Toolkit by clicking LEARN MORE.
Assignment: After playing the game, summarize your strategy by explaining how you manipulated the federal funds rate, why you did it (what headlines were you reacting too), and what the results were. You will have 16 weeks of decision making to endure. Pressure’s on! As the Fed Chairman, did you get dismissed or were you able to successfully manipulate the interest rate to keep the economy on track? If you got dismissed, you may want to give it another shot! Good luck! Due Friday 2/27
Read these comic books and then answer these questions on a sheet of paper:
- What is monetary policy?
- What is the Federal Reserve?
- What is the FEDs relationship with the US government? Why is this important?
- What are open market operations and how can the FED use this tool to influence the economy?
- What are reserve requirements and how can the FED use this tool to influence the economy?
- What are discount rates and how can the FED use this tool to influence the economy?
- What data influences the FED to make changes in monetary policy?
Due Tuesday 2/17
Please research and document the following economic data for 2014. Track the following leading indicators from January to December, either month to month or for each business quarter. Need to show trends for the year. You are looking for rate of change, so your answers should be in percentages, if possible.
Provide your source by name and URL
- Real GDP
- Stocks Markets (Dow Jones & NASDAQ) – select 1 year (it will be Feb 2014 – Feb 2015)
Due Wednesday 2/11
Here’s a starting point… www.bea.gov, www.bls.gov, www.rfe.org
The quiz will cover all macro material up to fiscal and monetary policy. Those two topics will not be on the quiz. Please review all notes (mine and yours) as well as practice packets.
- Watch the video (as many times as you need to).
- Take your own personal notes. I want to see how thoroughly you are taking notes. What you focus on and what you don’t.
- In addition to your notes, you are to also write up a half page reaction to the video. I want to know what you think about what you just viewed. At this point you have quite a bit more of economic knowledge, and your reaction should draw on that knowledge.
Due Thursday 2/5