Monday, June 8, 2015

Music and the Economy Extra Credit- Post Here!

Hi All,

If you were in class and received the extra credit, you can post your response here as well as the link to the song and they start/stop points.  Be prepared to play the song and lead a brief discussion on Tuesday.  This is extra credit and for students who plan to be in class on Tuesday.

Monday, April 20, 2015

Ch. 38 Assignment Due Wed. 4/21 and Thurs. 4/23

Due Tues 4/21.

1.  What is a nation's Balance of Payments?  What three accounts make up the balance of payments?

2.  Define the current account and describe the types of transactions included in it.

3.  Define the capital account and describe the types of transactions included in it.

4.  Define the official reserves account and describe the types of transactions included in it.

5.  If a nation has a deficit in the capital account, what must be true of the current account?  Explain.

Due Thurs. 4/23

1.  Consider the definitions of a flexible and fixed exchange rate systems.  Which currency valuation system do we have in the US?  How do you know?

2.  Define currency appreciation.  Define currency depreciation.

3.  Create a chart for all of the factors impacting currency value.  The chart should indicate the name of the factor, how this factor may cause appreciation, and how it may cause depreciation. 

Tuesday, April 14, 2015

Homework for Wed. 4/15

Determine absolute advantage and comparative advantage for each good.  Who should specialize in which?



Monday, April 13, 2015

Ch. 35 Assignment for Tues 4/14


Free Trade
Non-Tariff Barrier
Absolute Advantage
Comparative Advantage

Wednesday, April 1, 2015

Contrasting Budget Proposals

President Obama At City Club of Cleveland:

Collection of videos on House Republican Budget:

Great article!

Two weeks ago majority Republicans in the House of Representatives unveiled their 2016 budget.  the President did the same.  It would be an understatement to say that the economic priorities of the two major parties are not aligned.  And while neither budget is likely to be adopted in its entirety, these political documents speak volumes about the economic goals and ideologies of each party.

You should watch both videos/collection of videos and:

1.  Identify 3 economic issues on which the President and House Republicans present conflicting views.  Compare and contrast each with details from the videos.

2.  Select one of the 3 issues for deeper investigation.  Find an additional source (article, video, speech) and use that source to provide some more context.  Post the link to your alternative source.

3.  Continue your analysis of that issue, and provide your views on the issue in light of the two positions presented.  To what extent do you agree with each side on this issue?  Describe your views on each budget proposal in general.

President Obama At City Club of Cleveland:

Summary of House Republican Proposal:

Monday, March 23, 2015

Homework Due Tues. 3/24

 1. The unemployment rate in the country of Southland is greater than the natural rate of unemployment.

(a) Using a correctly labeled graph of aggregate demand and aggregate supply, show the current equilibrium real gross domestic product, labeled YC, and price level in Southland, labeled PLC. The president of Southland is receiving advice from two economic advisers—Kohelis and Raymond—about how best to reduce unemployment in Southland.

(b) Kohelis advises the president to decrease personal income taxes. (i) How would such a decrease in taxes affect aggregate demand? Explain. (ii) Using a correctly labeled graph of the short-run Phillips curve, show the effect of the decrease in taxes. Label the initial equilibrium from part (a) as point A, and the new equilibrium resulting from the decrease in taxes as point B.

(c) Raymond advises the president to take no policy action. (i) What will happen to the short-run aggregate supply curve in the long run? Explain. (ii) Using a new correctly labeled graph of the short-run Phillips curve, show the effect of the change in the short-run aggregate supply you identified in part (c)(i).

Monday, March 2, 2015

Ch. 15 Reading Guide

Due Tues:

1.  Study the roles/responsibilities of the components of the Federal Reserve from today's class.

2.  Define each of the  Federal Reserve's monetary policy tools:
a.  Open-market operations
b.  Reserve ratio (requirement)
c.  Discount rate

3.  Define easy money policy and tight money policy.

Due Wed:

1.  Graph the sequence of events that transpire when the Fed implements monetary policy.  Use a money market, investment demand curve, and finally an AS/AD diagram.  Complete this task for.
a.  Easy money policy starting at a recessionary gap
b.  Tight money starting at an inflationary gap.
Textbook page 279 will assist you with any problems.

Due Thurs:
Not in your textbook.  Be resourceful! 

1.  Who was Milton Friedman and what were some of his popular ideas/theories?
2.  Explain "Monetarism"

Friday will be a catch up/summary/review day.  The Monetary Policy Exam will take place on Monday, 3/9.  This test will include elements of Ch. 13, 14, and (primarily) 15.  You will need study for this one.  Start early.