CP Economics
Unit 6: Monetary and Fiscal Policy
SSEMA1 The student will illustrate the means by which economic activity is measured.
f. Describe the difference between the national debt and government deficits.
SSEMA2 The student will explain the role and functions of the Federal Reserve System.
a. Describe the organization of the Federal Reserve System.
b. Define monetary policy.
c. Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment, and economic growth.
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
b. Explain the government’s taxing and spending decisions.
SSEPF3 The student will explain how changes in monetary and fiscal policy can have an impact on an individual’s spending and saving choices.
b. Define progressive, regressive, and proportional taxes.
c. Explain how an increase in sales tax affects different income groups.
Day 1:
Standard: SSEPF3 The student will explain how changes in monetary and fiscal policy can have an impact on an individual’s spending and saving choices.
b. Define progressive, regressive, and proportional taxes.
c. Explain how an increase in sales tax affects different income groups.
EQ: How do taxes affect different groups of people?
1. Warm Up: List out all the different types of taxes you can think of. After students create list, discuss some of the taxes. What is being taxed? Who is receiving revenue?
2. What is the purpose of taxation? Discuss as a class. Lead students to make connections back to Unit 2 and understand that taxation is designed to help provide public goods and services. Explain that taxation is one component of fiscal policy. Define fiscal policy.
3. Can taxes have different impacts on different people? Discuss ideas.
4. Explain to students that there are three different types of taxes: Progressive, Regressive, and Proportional taxes.
5. Guide students through three case studies to mathematically show how different individuals are affected by different types of taxes.
6. Closing: Socrative Exit Ticket – Teacher Question: Why is a sales tax regressive?
Day 2:
SSEMA1 The student will illustrate the means by which economic activity is measured.
f. Describe the difference between the national debt and government deficits.
EQ: How does government spending impact the national debt?
1. Warm Up: Review questions on progressive, regressive, and proportional taxes.
2. Explain to students that we have looked at one of the main components of fiscal policy – taxation. Today, tell students that we are going to look at the second component of fiscal policy –government expenditures.
3. Give students a list of questions that will be addressed during class.
a. What is the national debt?
b. What is caused the national debt?
c. What is a budget deficit?
d. What is a budget surplus?
4. Closing: Socrative Exit Ticket
Day 3:
SSEPF3 The student will explain how changes in monetary and fiscal policy can have an impact on an individual’s spending and saving choices.
b. Define progressive, regressive, and proportional taxes.
c. Explain how an increase in sales tax affects different income groups.
SSEMA1 The student will illustrate the means by which economic activity is measured.
f. Describe the difference between the national debt and government deficits.
EQ: How can government taxing and spending affect the economy?
1. Warm Up: Socrative questions reviewing debt and deficit.
2. Pair students to work on practice activity based on student needs and results from socrative assessment.
3. Student practice activity that will require them to review and apply basic definitions for types of taxes, national debt, and budget deficit.
4. After completing the practice activity, students will watch a short video clip and conduct their own research on whether or not we should be worried about the national debt. Students will create a t-chart of information to submit.
5. Closing: Nearpod assessment questions.
Day 4:
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
b. Explain the government’s taxing and spending decisions.
EQ: How can government use fiscal policy to affect the economy?
1. Warm Up: Socrative pre-quiz on fiscal policy.
2. Explain to students that we have examined the two primary tools that the federal government has to influence the economy – taxation and government spending. Today, students will work to determine how to use fiscal policy to correct inflation and recession.
3. Give students graphic organizer. Define fiscal policy. From definition have students extract the two tools and the makers of fiscal policy.
4. Give students two scenarios. Students will work in groups to determine how to use the tools. Students will be required to use the AS/AD model to show/prove that their policy would work. Students must also write down any drawbacks to their policy.
5. Closing: Socrative Post-quiz questions on fiscal policy
Day 5:
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
b. Explain the government’s taxing and spending decisions.
EQ: How can we use fiscal policy to influence the economy?
1. Warm Up: Complete graphic organizer on fiscal policy. Review.
2. Use data from Socrative post-quiz from previous day to groups students into stronger/weaker pairings.
3. Tell students that today, they will practice applying fiscal policy to various situations. Give fiscal policy application practice. Students work in pairs.
4. Discuss assignment as a class with special focus on the final stagflationary scenario. Use to show how fiscal policy faces limitations.
5. Closing: Socrative Exit Ticket: Teacher Question: Why is fiscal policy limited in dealing with stagflation in an economy?
Day 6:
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
b. Explain the government’s taxing and spending decisions
EQ: How can we use fiscal policy to influence the economy?
1. Warm Up: Explain the problem of using fiscal policy to correct stagflation.
2. Put students in pairs. Tell students that today they will begin a brief project in which they will apply the tools of fiscal policy to two specific scenarios. They will be required to diagram how fiscal policy effectively changes aggregate demand.
3. Briefly have students create a ShowMe account and go over directions.
4. Students will work on video.
5. Closing: Remind students of project requirements and that the project is due by the end of the following day.
Day 7:
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
b. Explain the government’s taxing and spending decisions
EQ: How can we use fiscal policy to influence the economy?
1. Warm Up: Fiscal policy Socrative review
2. Fiscal policy quiz
3. After quiz, students will begin flipped video on Keynes and Hayek.
4. Closing: Review Quiz
Day 8:
SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
b. Explain the government’s taxing and spending decisions
EQ: What is the problem with using fiscal policy to influence the economy?
1. Warm Up: Hoover- Roosevelt Reading – Have students contrast the opinions of Hoover and Roosevelt.
2. Use reading to help students understand that the Great Depression was the first time in history that the federal government took a broad-based effort to influence the economy. Ideas were coming from Keynes. Not everyone at the time agreed with it.
3. Have students work in groups to brainstorm possible problems with fiscal policy. Provide link to handout – problems with fiscal policy to help guide students. Discuss.
4. Show picture of F.A. Hayek. Tell students he was a chief critic of Keynes. Students must watch video from Commanding Heights to find out what troubled him. Discuss.
5. What was Hayek’s plan? Watch Macroeconomic Follies video to discover.
6. Closing: Socrative Exit Ticket – Teacher Question: What did Hayek think would lead to economic growth?
Day 8:
SSEMA2 The student will explain the role and functions of the Federal Reserve System.
a. Describe the organization of the Federal Reserve System.
EQ: What is the role and purpose of the Federal Reserve Bank?
1. Warm Up: T/F set on Federal Reserve via Socrative as a pre-assessment
2. Give students a graphic organizer and key websites/sources to use to research the role, purpose, and structure of the Federal Reserve. Tell students they will take about 20 minutes to find as much of the information as they can. As students work, look over their shoulders and have students add data to the graphic organizer on the board.
3. As a class, use the graphic organizer to discuss the structure, roles, and purposes of the Federal Reserve.
4. Closing: Give same T/F set on Federal Reserve as a post-assessment to determine if students learned the key material for the day.
Day 9:
SSEMA2 The student will explain the role and functions of the Federal Reserve System.
a. Describe the organization of the Federal Reserve System.
b. Define monetary policy.
c. Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment, and economic growth.
EQ: What are the macroeconomic tools of the Federal Reserve?
1. Warm Up: Give three levels of the Federal Reserve, 2 functions of the Federal Reserve, 1 purpose of the Federal Reserve. (Review from previous day).
2. Explain to students that today they will be learning about the tools that the Federal Reserve has to influence the economy. These tools together are called monetary policy.
3. Interactive lecture/interrupted with student think/pair/share on tools of the Federal Reserve.
a. Open Market Operations
b. Interest Rates (Federal Funds Rate and Discount Rate)
c. Required Reserve Ratio
4. Closing: Socrative Exit Ticket / Teacher Question: What is the ultimate goal of monetary policy?
Day 10:
EQ: How does the Federal Reserve use the tools of monetary policy to influence the economy?
1. Warm Up: Socrative questions on tools of Federal Reserve
6. Explain to students that we have examined the three primary tools that the Federal Reserve has to influence the economy. Today, students will work to determine how to use monetary policy to correct inflation and recession.
7. Give students two scenarios. Students will work in groups to determine how to use the tools. Students will be required to use the AS/AD model to show/prove that their policy would work. Students must also write down any drawbacks to their policy.
2. Closing: Pass out graphic organizer on tools of monetary policy. As a class, complete the graphic organizer to show how the tools of monetary policy work.
Day 11:
EQ: How does the Federal Reserve use the tools of monetary policy to influence the economy?
1. Warm Up: Show how expansionary and contractionary monetary policy affect AD/AD (give students a chance to review from previous day).
2. In groups students work on Monetary Application Practice activity.
3. Go over practice as a class. Focus on stagflationary situation to show how monetary policy has shortcomings when dealing with stagflation.
4. Closing: Poll to assess comfort level with monetary policy.
Day 11:
EQ: How does the Federal Reserve use the tools of monetary policy to influence the economy?
1. Warm Up: Brief vocabulary and question review on monetary policy.
2. Quiz on monetary policy.
3. Closing: Review quiz.
Day 12-13:
EQ: How do we use the tools of fiscal and monetary policy to influence the economy?
1. Warm Up: Pass out project requirements and have student begin reading.
2. Explain to students that they will use Show Me to create an illustrated presentation that shows the way monetary and fiscal policy are applied to various scenarios. Students will illustrate using flow charts to show HOW monetary and fiscal policies are used to correct problems in the economy.
3. Closing: Review key requirements and deadlines.
Day 14:
EQ: How do we use the tools of fiscal and monetary policy to influence the economy?
1. Warm Up: Have students sort policy into monetary or fiscal policy.
2. Kahoot! Review
Day 15:
Test
Day 16:
Corrections