MACROECONOMICS “IT'S THE ECONOMY, STUPID!”

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Oct 28, 2013 (3 years and 8 months ago)

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MACROECONOMICS



“IT’S THE ECONOMY, STUPID!”

Understand
:

Macroeconomics examines/measures the health of the economy. It is a key factor in determining (re)elections of




politicians, as well as numerous
appointment
s

of government officials.

Unit Essential Question
:

1. How healthy is the economy?
/How can it be measured?


2. How can the economy be improved?


Measuring the Economy’s
Performance

Government, Taxes,
Spending, and Debt

The Federal Reserve and
Monetary Policy

Economic Stabilizatio
n

Financial Markets

1. What does gross domestic
product measure and how is it
used?

1. What are all the ways gov’t
obtains revenue?

1. What are the functions of
money?

1. What is the evidence of
economic instability?

1. What are basic investment
considera
tions?

2. What does consumer price index
measure and how is it used?

2. What determines a fair tax?

2. What is the role of the
Federal Reserve System (the
Fed) in our economy?

2. How can economic
stabilization be achieved?


2. What are the advantages
and disadvantages of
investing in A) stocks B)
bonds C) mutual funds and D)
401ks/or 403bs?

3. How is the unemployment rate
determined and what does it
actually mean?

3. Is gov’t debt acceptable?
Should the amount of debt be
li
mited?


3. What is the difference
between fiscal policy and
monetary policy? Which is
more effective?


4. What are the chief economic
indicators, and what do they do?


3. What is monetary policy?


3. What are the necessary
steps for investing your
money?

MEASURING THE ECONOMY’S PERFORMANCE
_______________________________________________________________________________________


Macroeconomics


Key economic indicators



GDP vs. GNP


Consumer Price Index


Inflation


Unemployment rate



Recession vs. Depressio
n



Business cycle


Land/
Resources


Labor


Capital


Productivity


GOVERNMENT, TAXES, SPENDING, AND DEBT
_____________________________________________________________________
____________________


Taxes:


Progressive




Proportional/flat




Regressive




Excise


IRS



Principle vs. Interest



Mandatory spending vs. Discretionary spending,


Federal/National debt


Deficit spending


Being i
n the “red” vs.
being i
n the “black”


THE FEDERAL RESERVE AND MONETARY POLICY
____________________________________________________________________
_________________


Money
/Currency


Money supply/monetary policy

expansionary vs. contractionary


Interest rate


Reserve system


ECONOMIC STABILIZATION
____________________________________________________________________________________
_______________________


Eco
nomic stability


Stagflation


S
upply
-
Side Economics vs. Demand
-
Side Economics


Trickle Down Theory vs. Keynesian Theory


Fiscal policy

vs. Monet
ary policy


FINANCIAL MARKETS
_______________________________________________________________________________________
__________________________


Stock market/Stock Exchanges/Examples?


Stocks

(and
Investment Risk Pyramid
)


Mutual funds


Bonds


401k/403b


Dow Jones Industrial Average


Bull vs. Bear Market