1. Welcome Knight Time! Find a seat and settle in If you did not receive a packet yesterday pick one up Finals are a month away!

2. Welcome C&E Students!!! Grab your handouts, a chromebook and settle in Turn in your Budget Project!!!! Roll Call Question: Which of your 5 senses would you decide to lose? Sight, Smell, Taste, Hearing, Touch Bell Work: Prepare for your Quiz! Labor Unions Gov’t Revenue and Expenditures

3. Reminders Unit 7 Test has been moved to Next Thursday Start reviewing powerschool and turn in your missing assignments Recovery Next Year’s Classes SOT Care Package Project HW: Download the notes on Globalization and prepare to take a vocab quiz on Tuesday Unit Opportunity (Chicago’s Teacher’s Strike) due Next Thursday

4. Unit Opportunity Research the Chicago Teachers’ Strike from 2012 Write a one page essay… – Summarizing the event – Explaining how Labor Unions played a major role in this event – Outcome Times New Roman, 12 pt font and double- spaced Worth 3 points Due Next Monday

5. Shhh! Quiz in Progress! All you need is a chromebook Login URL – http://goo.gl/forms/TCtFH30zKk http://goo.gl/forms/TCtFH30zKk When finished work on your DBQ research

6. Question to Ponder What characteristics should money have?

7. Characteristics of Money Durable: means that the item must be able to withstand being used repeatedly A cow is fairly durable, but a long trip to market runs the risk of sickness or death for the cow and can severely reduce its value. Twenty-dollar bills are fairly durable and can be easily replaced if they become worn. Even better, a long trip to market does not threaten the health or value of the bill.

8. Portable: means that individuals are able to carry money with them and transfer it easily to other individuals While the cow is difficult to transport & to the store, the currency can be easily put in my pocket.

9. 3. Divisible: means that the money can easily be divided into smaller units of value A 20-dollar bill can be exchanged for other denominations, say a 10, a 5, four 1s, and 4 quarters. A cow, on the other hand, is not very divisible.

10. 4. Limited in Supply: means that restrictions on the amount of money in circulation ensure that values remain relatively construct for the currency

11. How do Blind People Use Money? http://www.youtube.com/watch?v=JuBaUt qqR50 http://www.youtube.com/watch?v=JuBaUt qqR50

12. 7.4 “Economic Indicators ” Identify the role of money in the economy

13. I. Three Uses of Money A.Medium of Exchange 1.Any object that is accepted for goods and services 2.Barter- w/o money, goods and services are traded for others

14. B.Unit of Account- means that prices of goods and services are quoted in a standardized manner 1. Allows us to compare similar offers for goods and services to determine the best value C.Store of Value 1.Money keeps its value in two forms: currency (bills and coins) and deposits (money in financial institutions) 2.Interest- cost of borrowing money

15. II. Value of Money A. Inflation- value of money goes down, prices go up 1.Determined by the Consumer Price Index (CPI)- change in prices of essential goods/services 2.Deflation- value of money goes up, prices down

16. HUH?!? Suppose that an ice-cream cone that costs you a dollar doubles in price. This price increase causes the purchasing power of your dollar to fall because you have to use twice as many dollars to buy the same item. This is why inflation is particularly hard on people who have fixed incomes – people who get pensions or other fixed amounts of money.

17. B. GDP (Gross Domestic Product) – value of all final goods and services produced w/in a country’s borders in a year

18. GDP 10 Bicycles10 Computers10 Watches @ $200 each = $2,000 @ $1,500 each = $15,000 @ $100 each = $1,000 GDP = $18,000

19. C. Gross National Product (GNP)- goods and services produced by Americans Think ABOUT IT! – Even if a country produces the same amount of goods and services from one year to the next, the GDP could go up simply because prices increase. That would make it seem like the economy was growing even though it wasn’t D. Real GDP- adjusted for inflation

20. E. Per capita GDP- average per person

21. Welcome C&E Students! Grab your handouts and settle in Roll Call Question: Would you rather be a hamster the size of a Rhino or a Rhino the size of a hamster? Bell Work: – What is CPI? – How are GDP and GNP different? – What are the four characteristics all money should have?

22. Reminders Unit 7 Test has been moved to this Thursday Start reviewing powerschool and turn in your missing assignments Recovery Next Year’s Classes SOT Care Package Project HW: Download the notes on Globalization and prepare to take a vocab quiz TOMORROW! Unit Opportunity (Chicago’s Teacher’s Strike) due Next Thursday

23. Unit Opportunity Research the Chicago Teachers’ Strike from 2012 Write a one page essay… – Summarizing the event – Explaining how Labor Unions played a major role in this event – Outcome Times New Roman, 12 pt font and double- spaced Worth 3 points Due Thursday

24. 7.5 Business Cycle and Government Intervention identify the economic indicators of the business cycle

25. I. Phases in Business Cycle A.Peak- when GDP stops rising, the height of economic expansion B.Contraction- an economic decline marked by falling GDP, rising unemployment

26. 1.Recession- prolonged contraction (6-18 months)

27. 2.Depression- long and severe recession with high unemployment, low output C.Trough- economy at lowest point in economic contraction

28. D.Expansion 1.Period of economic recovery and growth as measured by rise in GDP 2.Business prosperity, falling unemployment Let’s draw it!

29. Business Cycle Analysis Your group will look at several images and descriptions. You must determine what part of the business cycle it falls under – Peak – Contraction – Trough – Expansion

30. A: Rising house construction B: The number of job vacancies rises G: Rising quantity of mail C: Increasing hours of overtime D: Rising homelessness H: Slower delivery times K: Falling share prices E: Rising demand for steel M: Rising real income L: Rising lipstick sales F: More people use pawnbrokers I: Home delivered pizza becomes more popular J: Rising air traffic N. Rising car sales

31. O: More rental housing available P: Growing mountain of unsold bricks Q: Fast food shops cut their prices T: The cost of shipping goods around the world starts to rise U: More skips start appearing on the streets V: Sales of milk chocolate start to decline X: Oil refineries report a reduction in stocks Y: Citizens Advice Bureau gets more callers W: Shops delivering lunchtime sandwiches to offices raise their prices R: Imports of sewing machines rise S: Increasing supply of credit Z: Rising government spending

32. b. The Crash (1). Black Tuesday (1929) – huge sell off of all stocks that led to fear that all banks would fail (2). Massive amounts of people began emptying their bank accounts, caused banks to fail

33. II. Economic Low Points A. The Great Depression – deepest and longest-lasting economic downturn in the history of the Western world. 1. Signs of Trouble a. large gap between rich and poor b. large portion of Americans were going into debt to buy consumer goods

34. 2. Other Causes a. Investing (1). 1925-29 stocks tripled in value (2). Climb encouraged speculation – making investments with borrowed money (3). Unfortunately most speculators ended up losing all the borrowed money and then some

35. 3. Aftermath a. Falling prices led to deflation and eventually massive unemployment b. Large trade tariffs are placed on all foreign goods to protect domestic industry

36. II. Creation of “The Fed” A.Federal Reserve Act of 1913- created the Federal Reserve 1.After getting off gold standard, needed federal bank to respond to economy 2.Purpose is to regulate/support banks, control money supply, and stabilize economic growth

37. B.Operates mostly independently from the government C.Chairman, Board of Governors, 12 Districts

38. A.Monetary Policy- actions The Fed takes to influence level of GDP (value of economic activity in the country) and rate of inflation B.Fiscal Policy – the federal government’s use of spending and taxation policies to affect our economy C.Reserve requirement- amount of money banks must keep in Fed banks as a reserve II. Monetary Policies

39. D. Discount rate- cost for banks borrowing from the Fed 1.Reducing the rate- encourages banks to borrow more money so they lend more to other people 2.Increasing the rate- slows down economy by discouraging borrowing

41. E. Fed Policies 1.Loose-money policy- reduce rates, lower reserve requirement, print currency= more money in economy 2.Tight-money policy- increase rates, raise reserve requirement= less money in the economy

42. Inside the Fed While you watch the film, complete a 3-2-1 – 3 Things You learned – 2 Questions you still have – 1 Fact you found most interesting https://www.youtube.com/watch?v= I2m3t2Yr8Vg

43. SPLAT! Excise TaxInflationGDPExpansionCollective Bargaining LockoutLoose- Money Policy Monetary Policy Estate TaxCPI GNPCapital Gains Tax The FedStrikeTrough Fiscal PolicyDiscount Rate ContractionTight-Money Policy Corporate Income Tax

44. Password Traditional economy Revenue Capital Gains Tax GDP Quota

45. Password Excise Tax Capitalism Karl Marx Entitlement Programs Strike

46. Password Protectionism Tariff Adam Smith Expansion Loose-Money Policy

47. Password GNP Subsidy European Union Corporate Income Tax Office of Management & Budget

48. Password Invisible Hand Command Economy Progressive Tax Strike Trade Surplus

49. Password Socialism Laissez-Faire Estate Tax Deficit Upton Sinclair

50. Inside the Fed We will be watching a film on the Federal Reserve You will complete a 3-2-1 for this activity 3 things you learned 2 questions you still have 1 interesting fact from the film

51. Economics BINGO!

52. Homework Find and print an article about inflation, deflation, monetary policy, or the Federal Reserve Underline/highlight any economics terms you know Circle any terms or concepts you don’t understand

58. Desk Work Read p. 663-665 and answer the following questions: 1.What does the Federal Reserve do? 2.How does monetary policy affect the economy? 3.What do you think the Fed is doing or should be doing to help our current economy?

59. Welcome C&E Students! Grab today’s handout and settle in Roll Call Question: Would you rather be a hamster the size of a Rhino or a Rhino the size of a hamster? Bell Work – How can we identify the 4 phases of the business cycle? – What were the main causes of the Great Depression?

60. Bell Work Answers Peak – height of economic expansion – GDP stops rising Contraction – falling GDP, rising unemployment Trough – lowest point of contraction Expansion – economic recovery and rising GDP People going into debt to by consumer goods, speculation in stock market and eventually the stock market crash

61. Reminders Unit 7 Test is next Wednesday! – Study Guide Recovery is Every Monday, Tuesday and Thursday – If you have more than 10 absences you must recover these to pass this class!!! Start reviewing powerschool and turn in your missing assignments Extra credit due Next Wednesday!