Welcome C&E Students! Grab your handouts and settle in Roll Call Question: What would you rather have as a pet; a mini horse, a pygmy goat or a teacup pig?

Mental Floss 5/17/16 Vocab Federal Reserve Act of 1913 Monetary Policy Fiscal Policy Reserve requirement Discount Rate Loose Money Tight Money Objective Identify the economic indicators of the business cycle Questions 1. What is CPI? 2. How are GDP and GNP different?

Bell Work Answers The Consumer Price Index determines inflation rate by tracking change in price of essential goods and services The Gross Domestic Product determines value of all goods and services produced within a country’s borders while the Gross National Product determines value of all goods and services produced by a country

Reminders Unit 7 Test is Friday! Unit 7.3 – 7.5 Quiz tomorrow – Pages 9 and 11 – Page # 13 will help you study for this – DUE TOMORROW AT THE BEGINNING OF CLASS Recovery is Every Tuesday, Wednesday, 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

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

Business Cycle Analysis Feel free to work with a partner 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

A: Rising house construction

B: The number of job vacancies rises

C: Increasing hours of overtime

D: Rising homelessness

E: Rising demand for steel

F: More people use pawnbrokers

G: Rising quantity of mail

H: Slower delivery times

I: Home delivered pizza becomes more popular

J: Rising air traffic

K: Falling share prices

L: Rising lipstick sales

M: Rising real income

N. Rising car sales

O: More rental housing available

P: Growing mountain of unsold bricks

Q: Fast food shops cut their prices

R: Imports of sewing machines rise

S: Increasing supply of credit

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

W: Shops delivering lunchtime sandwiches to offices raise their prices

X: Oil refineries report a reduction in stocks

Y: Citizens Advice Bureau gets more callers

Z: Rising government spending

Creation of “The Fed” A.Federal Reserve Act of 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

B.Operates mostly independently from the government C.Chairman (Janet Yellen), Board of Governors, 12 Districts

Fiscal Policy – the federal government’s use of spending and taxation policies to affect our economy Monetary Policy- actions The Fed takes to influence level of GDP (value of economic activity in the country) and rate of inflation II. Monetary Policies

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

Reserve requirement- amount of money banks must keep in Fed banks as a reserve 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

Fiscal and Monetary Policy Complete the questions on the back of your notes

Inside the Fed We will be watching a film on the Federal Reserve You will complete a for this activity 3 things you learned 2 questions you still have questions about 1 interesting fact from the film 2Yr8Vg 2Yr8Vg

Place the number of the following scenarios in the correct place in the business cycle. Poster Board Challenge

A.Economy is getting better B.Economy is at its highest point C.Economy is going down D.Economy is at it’s lowest point A B C D

Poster Board Challenge A.Business is in full swing B.GDP is decreasing C.GDP is at it’s lowest point D.GDP is increasing A B C D

Poster Board Challenge A.People are getting laid off B.Interest rates are high C.People are getting back to work D.Interest rates are low A B C D

Poster Board Challenge A.Unemployment is increasing B.Unemployment is decreasing C.Unemployment is an all time high D.Unemployment is an all time low A B C D

Economics BINGO!

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

Desk Work Read p 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?

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?

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