1. WELCOME TO UNIT 6: THE GREAT DEPRESSION AND THE NEW DEAL

2. IN YOUR NOTEBOOK: WRITE DOWN YOUR BEST INFERENCES ABOUT WHAT THE DEPRESSION WAS, BASED ON YOUR PRIOR KNOWLEDGE AND THESE IMAGES.

7. THE GREAT DEPRESSION  Date: 1929-1939  Definition: a period of economic depression in the United States and the rest of the world  Less production  Massive unemployment  Poverty and starvation  Significance  Huge cost to human well-being  Transformed the role of the US federal government

8. WHAT THIS UNIT LOOKS LIKE  3.5 weeks – now through 3/20  Topics  Causes of the Depression  Responses to the Depression – the New Deal  Assessments  Causes quiz, Mon 3/9 or Tu 3/10  New Deal poster + presentation (small groups)  IA3, 3/19 and 3/20 (in class)

9. AND NOW FOR ECONOMICS 101

10. KEY TERMS TO KNOW AND LOVE  Supply: the amount of a good or service that sellers are willing to sell  Demand: the amount of a good or service that buyers are willing to buy  Price: the amount that a buyer pays a seller for a particular good or service

11. SIMULATION 1: SUPPLY AND PRICE  Buyers: your job is to buy pencils at auction  We’re going to vary the amount of pencils in the economy  Round 1: one pencil  Round 2: three pencils  Round 3: twenty pencils  What happened to the price as the supply increased?

12. SIMULATION 2: DEMAND AND PRICE  Buyers: your job is to buy pencils at auction  We’re going to vary the number of people who are interested in buying pencils  Round 1: anyone caught with a golf pencil earns an automatic Saturday detention  Round 2: you have to take a lot of notes this week; they can be in pencil or pen  Round 3: you are now required to have a golf pencil every day in history class  What happened to the price as the demand increased?

13. IN YOUR NOTEBOOK: WHO DETERMINED PRICES IN THESE SIMULATIONS?

14. THREE REALLY BASIC RULES OF ECONOMICS  Demand is directly proportional to price – the more people want something, the more it will cost.  Supply is inversely proportional to price – the more of something is available, the less it will cost.  Individuals’ decisions, taken together, affect the economy – supply, demand, and prices are all the result of different individual consumers and producers, coordinated through the market.