Georgia Council on Economic Education w w w. g c e e. o r g
Macroeconomics and the Georgia Performance Standards Mike Raymer
Program Manager
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The Mission To help teachers teach those students, K-12, in the
public and independent schools of Georgia
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The Vision Productive Workers Informed Consumers Involved
Citizens Prudent Savers Wise Investors Sound lifelong decision
makers in a globally interdependent world Students leaving school
prepared for their roles as:
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EOCT Pass Rates
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Economics Test Data Trend
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Domain Performance for the 2008-2009 EOCT Domain WeightNumber
of Items Avg. Correct Fall Spring % Correct Fall Spring Fundamental
2 weeks 20.5%147.88.356%59% Micro 4 weeks 22%158.68.757%58% Macro 5
weeks 20.5%147.67.754%55% International 2 weeks 18%126.77.156%59%
Personal Finance 2 weeks 19%138.28.363%64% Handout
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GPS Performance standards provide clear expectations for
instruction, assessment, and student work. They define the level of
work that demonstrates achievement of the standards, enabling a
teacher to know how good is good enough. (www.georgiastandards.org)
Handout
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Domain Focus SSEMA1 The student will illustrate the means by
which economic activity is measured.
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Domain Focus SSEMA2 The student will explain the role and
functions of the Federal Reserve System.
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Domain Focus SSEMA3 The student will explain how the government
uses fiscal policy to promote price stability, full employment, and
economic growth.
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Macro Pacing Option #1: Five weeks of fury Option #2: Three
weeks of indicators, two weeks fiscal/monetary Option #3: Three
weeks of indicators, one week fiscal, one week monetary
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The Macro Must Haves
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Circular Flow Model
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Business Cycle GDP
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Expenditure Approach GDP=C+I+G+(X-M)
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Aggregate Demand
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Aggregate Supply
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Types of Unemployment 1.Structural 2.Cyclical 3.Frictional
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Questions?
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Where to Begin? Liberal Moderate Conservative Georgia Council
on Economic Education w w w. g c e e. o r g
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Georgia Council on Economic Education w w w. g c e e. o r g
Where to Begin? UnemploymentThe Federal Reserve GDPGovernment
Spending InflationTaxation RecessionFederal Debt DepressionFederal
Deficit
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Gross Domestic Product Gross= total Domestic= produced anywhere
in the 50 states, by anyone Product= final goods and services
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What does GDP measure? Total amount of final goods and services
produced in a country in one year. (Measure of Output)
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Are there any cool formulas you can give us relating to this
interesting concept? GDP=C+I+G+(X-M)
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C = consumption spending (think consumers) 72% I = investment
spending (think businesses investing in themselves) 15% G =
government spending 17% (X-M) = difference between exports and
imports -4%
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What is counted in GDP? FINAL goods and services Goods/Services
produced here, even if by a foreign co.
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What is NOT counted? Things produced outside the country.
Illegal stuff Purely financial transactions
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and INTERMEDIATE GOODS
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Problems associated with GDP Slow to calculate Does not count
everything (its an estimate) Inflation can distort the figure Real
vs. Nominal
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Per Capita GDP GDP divided by a countrys population
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GDP practice (all about GDP)
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Demonstration Lesson #1 Aggregate Demand and Aggregate Supply
Lesson
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AD/AS
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Questions?
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Bag of Mystery Inflation
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Teaching Tools for MACROECONOMICS from John Stossel
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15 Video Clips Instructor s Manual Segment Description Preview
Question Discussion and Analysis Questions Extension Activities
Multiple-Choice Questions What You Get
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Clip 2- Nominal Values vs. Real Values SSEMA2b
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Demonstration Lesson #2 Money and Inflation
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Inflation Calculator www.bls.gov
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Commanding Heights Georgia Council on Economic Education w w w.
g c e e. o r g
What is the national debt? What caused the national debt? Where
does the government get the money when it wants to spend more than
it takes in? What is a budget deficit? What is a budget surplus?
Questions for You
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Demonstration Lesson #4 Should we worry about the national
debt?
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Georgia Council on Economic Education w w w. g c e e. o r g
1.Will the national debt cause the US to go bankrupt? 2.Are the
interest payments on the debt important? 3.What about paying off
the debt by increasing taxes? 4.Does running deficits today, and
adding to the national debt, put a burden on future
generations?
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www.usdebtclock.org
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Clip 12- Is Govt. Too Big? SSEMA3b
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Fiscal Policy
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Actions taken by the Federal Government to influence the
economy (business cycles).
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How do they do it? Taxation (revenue) Spending (expenditures)
-transfer payments-
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How/When/Why If the economy needs a boost the Federal
Government might: _______________ taxes. _______________
spending.
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How/When/Why If the economy needs to be cooled off the Federal
Government might: _______________ taxes. _______________
spending.
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Demonstration Lesson #5 How Can Changes in the Federal
Governments Budget Stabilize the economy?
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Questions?
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Monetary Policy
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The actions the Federal Reserve (Central Bank) takes to
influence the level of GDP and the rate of inflation in the
economy.
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Monetary Policy DVD
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Tools of the Fed: 1. Open Market Operations 2. Discount Rate
(Fed to banks) 3. Federal Funds Rate (bank to bank) 4. Reserve
Requirements How Do They Do It?
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Open Market Operations Simulation
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How/When/Why If the economy needs a boost the Federal Reserve
might: _______________ bonds. _______________ interest rates.
_______________ reserve requirements.
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How/When/Why If the economy needs to be cooled off the Federal
Reserve might: _______________ bonds. _______________ interest
rates. _______________ reserve requirements.
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Questions?
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Demonstration Lesson #6 The Monetary Policy Game
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Lesson Ideas for the GPS Handout
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Georgia Council on Economic Education w w w. g c e e. o r
g
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Georgia Council on Economic Education w w w. g c e e. o r g
www.georgiacouncil.blogspot.com
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Workshop: Macroeconomics Workshop Leader: Mike Raymer
[email protected]
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Georgia Council on Economic Education w w w. g c e e. o r
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