Due Tues. 12/21

Using your Keynesian equilibrium chart from class, complete the following:


1.  Describe the C/DI relationship.
2.  Describe the S/DI relationship.
3.  Describe the APC/DI relationship
4.  Describe the APS/DI relationship.

Ch. 11 Reading Guide

Due Tues. 12/6


1.  Review the 3 explanations for the downward sloping aggregate demand curve.
2.  Identify each of the factors shifting AD.  How would each factor cause AD to increase?  Decrease?








Due Wed. 12/7


1.  Define short run aggregate supply (SRAS).
2.  Why is the SRAS curve upward sloping?
3.  Identify each factor shifting SRAS.  How would each factor cause SRAS to increase?  Decrease?






Due Friday. 12/9


1.  What is the Long Run Aggregate Supply Curve and why is it vertical?
2.  What does long run equilibrium (where LRAS and AD meet) tell us?

Budget/Spending Quiz

Review the following items to be successful on tomorrows very brief quiz:


1.  Concept and example of discretionary vs. non-discretionary (mandatory) spending


2.  Federal deficit vs. national debt


3.  Arguments to worry/not worry about the national debt.


4.  The federal budget process: 
a.  What is the role of the cabinet secretaries?
b.  What is the role of the President?
c.  What is the role of the Appropriations Committee?
d.  What is the role of the full Congress?

Budget Project Links

Budget Links:  Use these links to help make your changes to the federal budget.  Remember to provide detailed information.




Good Into to Budget Functions:

http://budget.house.gov/budgetprocess/budgetfunctions.htm



Specific expenditures for each budget function (2013 but still good)


http://www.nytimes.com/interactive/2012/02/13/us/politics/2013-budget-proposal-graphic.html








Additional Information on Federal Agencies


https://www.fas.org/sgp/crs/misc/R41726.pdf

Economic Indicators Unit Review Sheet

Review Sheet:  Economic Indicators

Output

1. Define Gross Domestic Product.
2. Identify each component of GDP by the expenditure method.  Provide an example of each.
3. Provide an example of:  intermediate good, non-market transaction, non-productive transaction, secondhand sale, and underground economy.  Why are these excluded from GDP?
4. How is a recession defined in terms of GDP?
5. What is unplanned investment?  How is it a factor in GDP?
6. How are net exports calculated?  What does it mean if the net exports component is a negative number?
7. What is GDP per capita? 
8. Explain the difference between nominal GDP and Real GDP.
9. How is real GDP calculated using base/current year prices and quantities?
10. What is the GDP Deflator?  How is it used in real GDP calculations?
11. What are the critical flaws of GDP as an economic indicator?  In other words, what does it do poorly?
12. Contrast Gross National Product (GNP) with Gross Domestic Product (GDP).

Unemployment

1.  Define:  full employment, unemployed, labor force
2. Identify each type of unemployment and provide an example.
3. Which type of unemployment is most serious to economists?  Least serious?
4. Which two type of unemployment are present at full employment?
5. Describe the impact of each on the calculation of the unemployment rate:  Discouraged workers, students, the underemployed, part-time workers.
6. Explain Okun’s Law.

Inflation

1. Define inflation.  Explain cost push and demand pull inflation.  Graph them.
2. Identify the groups helped/hurt by inflation.
3. What is the CPI?  How does it measure inflation?
4. What are market baskets?  Why are the market baskets weighted in the CPI?
5. How does the CPI differ from the GDP Deflator?  How are the two are indicators similar?
6. Explain the flaws imbedded in the CPI.
7. What is the difference between Core CPI and standard (headline) CPI?
    
     
     
   Calculations:
    

Year	Nominal GDP	GDP Deflator	Population
2009	$5000	125	11
2010	6000	150	12

 

1.  What is real GDP for 2009?
2.  What is real GDP for 2010?
3. What is GDP per capita for 2009?
4. What is GDP per capita for 2010?
5. What was the inflation rate between 2009 and 2010?
6. *What was the rate of nominal economic growth between 2009 and 2010?  What was the real rate of economic growth between those same years?
    

 

Employed persons:  2000

Discouraged workers: 150

Actively looking for work but without job: 300

Not working but not looking for work: 50

Part time workers: 10

1.  Calculate the labor force
2. Calculate the unemployment rate

Ch. 8 Reading Guide (Inflation 141-149)

1.  How does the Consumer Price Index (CPI) measure inflation?
2.  Describe the "market baskets" that are used by the Bureau of Labor Statistics in CPI calculation?  Why are they weighted?
3.  Contrast anticipated and unanticipated inflation.
4.  Review the groups helped and harmed by inflation.
5.  Define deflation and identify its effects.

Ch. 7 Reading Guide Part 2 (Due Thurs)

Carefully read p. 123-125


1.  In your own words, explain the difference between real and nominal GDP.


2.  In what circumstances would an economist prefer real GDP data to nominal GDP data? 


3.  What is a price index?


4.  What is the formula for calculating read GDP when you are provided with a price index?

Ch. 7 Reading Guide

Due Tues:
Read 112-117
1.  In your own words (and not the definition from class), what does GDP measure?
2.  Why do we only count final goods?  What would be an example of an intermediate good and why would it be excluded?
3.  What are "inventories" and how do they count towards GDP?
4.  Identify all other types of transactions that would be excluded from GDP.  Try to provide an example and explanation as to why national income accounts keep it out of out of GDP.
5.  How can the net exports component of GDP be negative?

Does My Vote Count? Economists weight in.....

With the Presidential election looming in the near future, people are gearing up to exercise their all-powerful ability to vote.  Citizens have been made to believe that each and every vote is important in determining the success of our future.  While voting is an essential part of a functioning democracy, there are some economists that feel that the act of voting is the single greatest waste of time.

http://www.nytimes.com/2005/11/06/magazine/why-vote.html

http://mentalfloss.com/article/59873/10-elections-decided-one-vote-or-less

http://www.nytimes.com/2016/04/25/opinion/should-everybody-vote.html

http://reason.com/archives/2012/10/03/your-vote-doesnt-count/ 


As you read through the articles in the above links, you should answer the following questions:

1) Explain two reasons why you believe that people feel so strongly about voting.

2) Explain the main conclusion that is reached in the article "Should everybody vote?"

3) Explain 3 reasons why economists suggest that people should NOT vote.

4) After reading the articles, do you believe that every citizen of voting age should vote?  Why or why not?

30 Days on Minumum Wage

Today we discussed price floors-legal restrictions on how little may be changed/payed for a good or service..  Minimum wage is a great example of a price floor in our economy.  We know price floors cause harmful surpluses, but do they also do good for the most vulnerable people in our society? 


Watch the film:  https://www.youtube.com/watch?v=vpTXmJ9-0Ic


Answer 1 of the following questions for class on Monday.  A 1-2 page response is adequate.


1. As you watch the film, keep a running list of challenges and hardships faced by minimum wage earners.  In a well-written response, identify three specific hardships and discuss how they were manifested in the movie.  Describe how these hardships impact the characters economically and/or socially.  How could these negative impacts be mitigated or avoided? 


2. The goal of the documentary was to provide insight into the lives of minimum wage workers.  To what extent do you think the film is realistic and accurate?  Cite specific examples from the film to discuss the ways in which the film was a real and accurate depiction of life making minimum wage.

 3. Some have argued that minimum wage today is a “broken” system and should be changed or done away with.  To what extent do you agree with this statement?  What changes could be made to minimum wage to make the system more effective.

Demand Quiz Practice

Graph:
1.  Computers and printers are complements.  Illustrate the demand curve for computers as printer prices decline.
2.  Fords and Toyotas are substitutes.  Illustrate the demand curve for Toyotas as Ford prices decline.
3.  Illustrate the demand curve for Fords.  Illustrate the impact of consumers expecting a 10% price reduction for Ford products.
4.  Illustrate the demand curve for Fords.  Illustrate a 10% price reduction for Ford products.
5.  Illustrate the demand curve for ice cream.  Illustrate an increase in consumer incomes.


Law of Demand
Diminishing Marginal Utility
Normal vs Inferior Goods
Elasticity of Demand




Stop by 338 in the AM if you wish!

Chapter 3 Reading Guide (part 2)

1.  Draw the demand curve for trucks, a normal good.  Illustrate the impact of a decrease in the price of the substitute, cars.
2.  Draw the curve for ranch dressing, a normal good.  Illustrate the impact of a decrease in the price of the substitute, Italian dressing.
3.  Draw the demand curve for heating oil.  Illustrate the impact of an anticipated decrease in heating oil prices.

4.  Define "elasticity of demand".
5.  What does it mean if a good exhibits elastic demand?  Provide some examples of goods whose demand is likely to be elastic.
6.  What does it mean if a good exhibits inelastic demand?  Provide some examples of goods whose demand is likely to be inelastic.

Enjoy the long weekend and the holiday if you are observing!

Optional Debate Assignment-Fact Checking The Debate

I'm glad you have taken the time to watch and enjoy last night's debate.  While so many issues were discussed, I would like you to focus on just one economic exchange between the candidates. 






Step 1:  Select an issue from the list below.


1.  International Trade




2.  Income Taxes (as a policy, not the release of candidates' tax returns)




3.  Unemployment rate/jobs/wages




Step 2:  Watch a the debate or review the sections you need


http://www.nytimes.com/video/us/politics/100000004673000/full-video-first-presidential-debate.html




Step 3:  Identify the statements made on the issue by each candidate.


Summarize, in a paragraph for each candidate, the assertions made by each candidate.


Step 4:  Fact check the assertions made by each candidate.  Break down their statements into individual claims. Then, utilizing multiple sources which you will identify, attempt to verify the validity of each claim.  At the end, make a determination in your own view, as to which candidate is being more truthful and justify your explanation. 

Ch. 3 Reading Guide: Part I

1.  Define demand.


2.  Contrast normal goods and inferior goods.  Provide an example of each.


3.  Provide a real life example of the Law of Diminishing Marginal Utility.


4.  Create a chart identifying each of the non-price factors affecting demand.  Name each factor, illustrate the impact of an increase in that factor, illustrate the impact of a decrease in that factor.






That's it!

Ch. 1 and 2 Review Sheet

In addition to the economic model practice from class today, you should study:


definition and purpose of economics
scarcity
needs/wants
marginalism
all other things equal assumption
mico/macro
positive/normative economics
macroeconomic goals
fallacies and logical problems in economics
comparative economic systems
components and relationships of the circular flow

Reading Guide Ch. 2 (part 2) Due Tues 9/20

1.  Define the Law of Increasing Opportunity Cost.


2.  Illustrate an increasing opportunity cost PPC.  Label point A as fully utilized resources.  Label point B as idle resources.  Label point C beyond the production possibilities frontier.  


3.  Identify a list of factors that may cause an economy to produce at each point.


4.  Pre-read the "economic systems" section beginning on P. 33.


5.  With respect to the Circular Flow Model of the Market Economy, define:
a.  Product Market
b.  Factor Market
c.  Businesses/Firms
d.  Consumers/Households


Have a great weekend!  Get outside!!

Ch. 2 Reading Guide (part I)

1.  Define the "economizing problem".


2.  Know that economists divide resources into four distinct categories often called the factors of production.  Create a chart that includes the name of each factor of production, a definition of each, and a real world example of that resource. 




That is all :)

Chapter I Reading Guide

Chapter 1: Reading Guide

 

1. Consider the textbook definition of economics from page three.  If someone told you that a course in economics is the same as a course in business would you agree or disagree with them?  Justify your answer.
2. What is the concept of scarcity?  Pick a good or service from your life?  Is it “scarce” in economic terms?  Explain why or why not.  Draw upon your definition of scarcity to do so.
3. Economists argue that all economic decisions have “opportunity costs.”  What is meant by this concept?  Explain one example of how opportunity cost impacted you this past summer.
4. Consider the section entitled “economic methodology.”  Do you think that economics is more of a science or more of an art?  Explain.
5. Economists rely heavily on the assumption of “Ceteris Paribus” in developing economic theories.  What does this mean?  Why is it important to observe this assumption?  What problems may result from failing to do so?
6. Identify the 8 macroeconomic goals of a market economy?  Are there any goals that seem contradictory to you?  Explain.
7. Contrast microeconomics and macroeconomics. Provide an example of an issue that may be studies in each field. 
8. Contrast positive economics and normative economics.  Provide an example of a positive statement and a normative statement.
9. Explain how two variables may be “correlated” without necessarily having a cause/effect relationship?
10. On a recent trip to Carvel you took advantage of the “Buy one Get one Free” sundae deal on Wednesdays.  Economists would argue that no such deal could exist because “nothing is free.”  Who is correct?  Explain.

 

Vocabulary Terms

Economics                                                                                           

Bias

Loaded Terminology                                                                         

Scarcity                                                                                                                

TINSTAFL

Tradeoff

Opportunity Cost

Microeconomics

Macroeconomics

Ceteris Parabus

Correlation vs Causation

Microeconomics

Macroeconomics

Positive Economics

Normative Economics

Utility

Economics 12 Extra Credit

Due in class no later than Friday, 6/3.  Hand deliver.  No e-mailed assignments accepted.




The Federal Reserve is at the center of our economy through its power to alter monetary policy.  When the Fed. was created in 1913, its purpose was to prevent the type of instability that plagued the US economy during the 19th century.  Today, the Fed. has many supporters and detractors.  Those who oppose the Fed. typically point out that a central bank is not mandated in the Constitution.  Others, however, take a more sinister view.  For extra credit you should:


1.  Watch the video by following the link:   https://www.youtube.com/watch?v=_dmPchuXIXQ




2.  Identify 3 "conspiracy theories" asserted by the filmmakers about the Fed.  Fully explain each with details from the film.  Write about 1 paragraph per example.


3.  Research one of the conspiracy theories in greater detail.  To what extent does the assertion seem true or have merit?  To what extent does it seem fabricated?  If you believe it is true, why do you think the Fed. behaves this way?  If you think it is fabricated, what motives do you think the filmmakers have to misrepresent the Fed. in this way?
Provide a list of your research sources to accompany #3.

Is Comparative Advantage Dead?

OK.  So for two days we've been studying comparative advantage and the overwhelming message has been:  Trade is good!  Minimize opportunity cost.  Efficiently use resources.  Specialize in that which you do best, and life for everyone automatically gets better! 


So why then are political candidates from the left and the right criticizing NAFT and the TPP every chance they get?  Why do so many smart people dislike trade?  Did they not the comparative advantage packet, or is there more to it?


Read the article distributed in class, and consider some of the other factors that may muddy the waters on the gains from trade.  Analyze the arguments against a strict, comparative-advantage based trade policy and try to frame your discussion in light of the current political debate.  Feel free to inject your own views.


DUE MONDAY PERIOD 1

Reading Guide: Ch 38

Due Tues:


1.  Why do nations trade?   What arguments are made for "free trade" or at least "free-er trade"?
2.  What barriers to trade have historically been erected by nations (protectionist measures)?
3.  What arguments are made in favor of protectionism.  Be prepared to discuss each.

Republican Candidates

Trump:

https://www.donaldjtrump.com/positions/tax-reform

 

Cruz:

https://www.tedcruz.org/tax_plan/

 

Bush

http://www.ontheissues.org/2016/Jeb_Bush_Tax_Reform.htm

 

Fiorina

http://www.ontheissues.org/2016/Carly_Fiorina_Tax_Reform.htm

 

Carson

http://www.ontheissues.org/2016/Ben_Carson_Tax_Reform.htm

 

Rubio

http://www.rubio.senate.gov/public/index.cfm/files/serve/?File_id=2d839ff1-f995-427a-86e9-267365609942

 

Paul

http://time.com/4107231/flat-tax/

 

 

Democratic Candidates

Clinton:

http://www.ontheissues.org/2016/Hillary_Clinton_Tax_Reform.htm

 

Sanders

http://www.ontheissues.org/2016/Bernie_Sanders_Tax_Reform.htm:

AP Paper Info

Turnitin.com


Class ID: 12383878


Password:  Yellen




Good luck this week.  E-mail with any questions.  Use APA format on your own or through noodle tools.  Remember the minimum source requirement is 5 with one as a book/monograph.


Email any questions.  Submit by the due date:  Saturday, 3/26 at NOON!

Money and Monetary Policy Review Topcs

Name______________________________________

Nadramia/AP Economics

 

Monetary Policy Review Sheet

 

Chapter 13

The three functions of money

M1, M2, M3

Fiat vs Commodity Money

3 types of demand for money

The money market:  factors affecting money supply and demand for money

The Federal Reserve:  what does it control, how are Board members selected etc.

 

 

Chapter 14

How do banks create money:  goldsmith vs. banker

Reserve ratio

Reserve Requirement

New money created by a single bank (equal to that bank’s excess reserves)

New money created by banking system (equal to excess reserves times money multiplier

Money multiplier formula

 

 

Chapter 15

Monetary policy vs fiscal policy

Goals of monetary policy

Easy vs tight money policies

Effects on real GDP, price level

Effects on interest rates

Effects on real wages

3 tools of the Federal Reserve

Most/least frequently used tools

 

Graphs

The money market

Investment demand

Impact of monetary policy on the economy (AS/AD)

 

Ch. 15 Reading Guide

Good morning all!  I hope you have your book and are ready to complete the reading guide.  Please have it done for tomorrow.


1.  Compile a list of bank assets and bank liabilities.


2.  Define the 3 tools of monetary policy held by the Fed.
a.  Open Market Operations
b.  The Reserve Requirement
c.  Benchmark Interest Rate (The Discount Rate and Federal Funds Rate)


3.  Define easy money policy and tight money policy.  Describe when the Fed. would wish to implement each.


4.  Create a chart detailing how each tool described in #2 would be used during:
a.  An easy money policy
b.  A tight money policy




5.  Describe how Janet Yellen is able to be both brilliant and beautiful at the same time.

Don't get FED up! Use these links to complete your assignment.

https://www.federalreserveeducation.org/about-the-fed/structure-and-functions




http://www.frbsf.org/education/teacher-resources/what-is-the-fed/structure


http://www.businessinsider.com/who-actually-owns-the-federal-reserve-2013-10

Reading Guide Ch. 14 :)

Due Tues. 2/23


1. Please define each of the following terms:
a.  Vault cash
b.  Reserve ratio
c.  Reserve requirement (required reserve ratio)
d.  Required reserves
e.  Excess reserves








Due Wed. 2/24


1.  How is the money multiplier calculated?
2.  What is the relationship between the reserve requirement and the money multiplier?
3.  Why is the amount of money created through the money multiplier process usually a high estimate/overstatement of how much money is actually created by the banking system?








Due Thurs. 2/25

1)Tina deposits $500 that was in her sock drawer into a checking account at the local bank.

a. By how much can this bank increase the money supply?

b.  By how much can the banking system increase the money supply?

2) The central bank of Economania has $100 million in checkable deposits; the initial required reserve ratio is 10%. The commercial banks follow a policy of holding no excess reserves.  The public holds no currency, only checkable deposits in the banking system.

a. By how will the money supply change if the required reserve ratio falls to 5%?

b.  Assume that it is the Federal Reserve (central bank) that made the decision to decrease the required reserve ratio.  On a properly labeled graph of the money market, show the results of this policy change on nominal ir and Q of money.

c.  Considering the change to nominal ir you determine in b, illustrate on an AS/AD diagram the impacts of this change on output, PL, and UR.

Ch 13 Reading Guide

Due Wed.
1.  Be sure to review the functions/types/characteristics of money from class.
2.  Define and provide examples of the Fed's money classifications: m1, m2, m3




Due Thurs.
1.  Define transactions demand for money (Dt) and illustrate it as a demand curve.
2.  Define asset demand for money (Da) and illustrate it as a demand curve.
3.  Define total demand for money (Dm) and illustrate it as a demand curve.
4.  Why is slop of the Dt curve unlike that of the Da or Dm curve?

AP HW Due Tues 1/12

DI	C	S	APC	APS	MPC	MPS
390		0			xxx	xxx
410	405
	420	10
450	435

Complete the chart!

Ch. 9 Reading Guide Due Monday 1/11

This chapter focuses on the math of Keynesian economics.  We will use different techniques to determine the degree to which fiscal policy ought to be used to fix problems at hand. 




Define:


1.  Consumption
2.  Savings
3.  Average Propensity to Consume
4.  Average Propensity to Save
5.  Marginal Propensity to Consume
6.  Marginal Propensity to Save


Identify the mathematical calculation for:
a.  APC
b.  APS
c.  MPC
d.  MPS

Ch. 12 Reading Guide: Fiscal Policy

Due Tuesday:


1.  Create a chart organizing Expansionary Fiscal Policy and Contractionary Fiscal Policy.  Be sure to include as column headings: economic problems necessitating each policy, how taxes should be changed to implement the policy, how G. spending should be changed to implement the policy, the effects of the policy on GDP, effects of the policy on inflation rate, effects of the policy on unemployment rate, effects of the policy on federal deficit/surplus, effects of the policy on national debt.


If you have trouble completing this assignment come in before school to discuss.










Due Thursday:


1.  Explain the contrast between discretionary and automatic fiscal policy.




2.  Completely explain each of the three automatic stabilizers of fiscal policy and describe how each would work in and inflationary AND recessionary situation.




3.  Fully explain each of the "drawback" of fiscal policy.  These include:
a.  Political considerations
b.  Timing lags
c.  The Crowding Out Effect
d.  The Net Export Effect