Strand E2 The National Economy of The United States of America
Standard 2.1 Understanding National Markets Grade Level HS184.108.40.206.220.127.116.11.18.104.22.168.22.214.171.124.82.1.9GLCE/HSCEIncome - Describe how individuals and businesses earn income by selling productive resourcesCircular Flow and the National Economy – Using the concept of circular flow, analyze the roles of and the relationships between households, business firms, financial institutions, and government and non- government agencies in the economy of the United States.Financial Institutions and Money Supply – Analyze how decisions by the Federal Reserve andactions by financial institutions (e.g., commercial banks, credit unions) regarding deposits and loans, impact the expansion and contraction of the money supply.Money Supply, Inflation, and Recession – Explain the relationships between money supply, inflation, and recessionsGross Domestic Product (GDP) and Economic Growth – Use GDP data to measure the rate of economic growth in the United States and identify factors that have contributed to this economic growthUnemployment – Analyze the character of different types of unemployment including frictional, structural, and cyclical.Economic Indicators – Using a number of indicators, such as GDP, per capita GDP, unemployment rates, and Consumer Price Index, analyze the characteristics of business cycles, including the characteristics of peaks, recessions, and expansions.
Relationship Between Expenditures and Revenue (Circular Flow) – Using the circular flow model, explain how spending on consumption, investment, government and net exports determines national income; explain how a decrease in total expenditures affects the value of a nation’s output of final goods and services.
American Economy in the World – Analyze the changing relationship between the American economy and the global economy including, but not limited to, the increasing complexity of American economic activity (e.g., outsourcing, off-shoring, and supply-chaining) generated by the expansion of the global economy.Key conceptsEssential understandings(Procedural or Conceptual)Vocabulary- individuals, income, productive resources, firms, financial institutions, agencies, deposits, loan, expansion, contractions, unemployment (frictional, structural, cyclical), CPI, GDP, per capita, peaks, recessions, consumption, net, exports, global economy
Aligned AssessmentsStudents will know1. How income is generated by selling goods2. The circular flow of economic activity3. Various financial institutions and their effect on the oney supply4. The relationship between money supply, inflation, and recession5. GDP and factors of economic growth6. The various types of unemployment7. Various economic indicators that measure the economy8. How the actions of one sector of the circular flow effects the other sectors9. How the American economy and the global economy impact and influence each other Students will be able to1. Describe how individuals and businesses earn income by selling productive resources2. Draw the circular flow of economics model and be able to illustrate the relationship between households, business, financial institutions, and government3. Describe how the decisions of the Federal Reserve impact the money supply4. Identify the relationships between money supply, inflation and recession5. Chart the rate of economic growth by using GDP data, and describe the factors that influence said growth6. Classify the different types of unemployment7. Identify and explain various economic indicators and how they measure the business cycle8. Draw the ciruclar flow of economics model and be able to explain how the performance of one sector can influence the other sectors9. Explain the relationship between the American economy and the global economy, and how that relationship has been changing over time Student Friendly Language Target Asesment1. I can describe how individuals and busineses earn income by selling productive resources (knowledge: short answer)*In the cartoon Peanuts, why does Lucy Van Pelt make money by giving advice to Charlie Brown?2. I can draw the circular flow of economics model and be able to illustrate the relationship between households, businesses, financial institutions, and government. (knowledge: short answer)*Draw the circular flow of economics. Detail how all sectors interact.3. I can describe how the decisions of the Federal Reserve impact the money supply*The Federal Reserve wishes to drop the inflation rate. What can they do?a. raise the interest rateb. order a freeze on all pricesc. order a freeze on all wagesd. stop printing the money4. I can identify the relationships between money supply, inflation and recession (analysis: short anwer)*Barrack Obama gives everyone a check for $1 million, how much would a Hershey Bar cost? Explain and defend your answer.5. I can chart the rate of economic growth by using GDP data, and describe the factors that influence GDP growth. (product project)*Compare and Contrast the GDP data of the U.S. with the GDP of an underdeveloped country. Which factors contributed the GDP of each country?6. I can classify the different types of unemployment*Define the following types of unemploymenta. cyclicalb. frictionalc. classicald. structural7. I can identify and explain various economic indicators and how they measure the business cycle (knowledge: Essay, Multiple Choice)* The economy is in a recession. Explain what that would look like using the CPI, GDP, Per Capita GDP, and Unemployment rates.** GDP is up, Per Capita GDP is up, uneployment rates are down, and the CPI shows prices are down. What is happening in the business cycle?a. It is in recessionb. It is peakingc. It is in contractiond. It is convulsing8. I can draw the ciruclar flow of economics model and be able to explain how the performance of one sector can influence the other sectors*The United Auto Workers calls a strike. Explain in a step-by-step fashion how this would affect the circular flow diagram.9. I can explain the relationship between the American economy and the global economy, and how that relationship has been changing over time. (Analysis: Product based assessment)* The students will be each assigned a product that is fully assembled in the USA, but the components are produced outside the USA. The students are to create a timeline of production tracking the making of the product from raw material to final product.