Macroeconomics and the Georgia Performance Standards Mike Raymer Program Manager Georgia Council on Economic Education w w w . g c e e . o r g
The Mission To help teachers teach those students, K-12, in the public and independent schools of Georgia
Productive Workers Informed Consumers Involved Citizens Prudent Savers Wise Investors Sound lifelong decision makers in a globally interdependent world The Vision Students leaving school prepared for their roles as:
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
Domain Focus SSEMA1 The student will illustrate the means by which economic activity is measured.
Domain Focus SSEMA2 The student will explain the role and functions of the Federal Reserve System.
Domain Focus SSEMA3 The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth.
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
The Macro “Must Haves”
Business Cycle GDP
Expenditure Approach GDP=C+I+G+(X-M)
Types of Unemployment Structural Cyclical Frictional
Where to Begin? Liberal Moderate Conservative Georgia Council on Economic Education w w w . g c e e . o r g
Where to Begin? Unemployment The Federal Reserve GDP Government Spending Inflation Taxation Recession Federal Debt Depression Federal Deficit Georgia Council on Economic Education w w w . g c e e . o r g
Gross Domestic Product Gross= total Domestic= produced anywhere in the 50 states, by anyone Product= final goods and services
What does GDP measure? Total amount of final goods and services produced in a country in one year. (Measure of Output)
Are there any cool formulas you can give us relating to this interesting concept? GDP=C+I+G+(X-M)
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%
What is counted in GDP? FINAL goods and services Goods/Services produced here, even if by a foreign co.
What is NOT counted? Things produced outside the country. Illegal stuff Purely financial transactions
Problems associated with GDP Slow to calculate Does not count everything (it’s an estimate) Inflation can distort the figure Real vs. Nominal
Per Capita GDP GDP divided by a country’s population
Demonstration Lesson #1 Aggregate Demand and Aggregate Supply Lesson
Inflation “Bag of Mystery”
15 Video Clips Instructor’s Manual Segment Description Preview Question Discussion and Analysis Questions Extension Activities Multiple-Choice Questions What You Get…
Demonstration Lesson #2 Money and Inflation
Inflation Calculator www.bls.gov
Commanding Heights Georgia Council on Economic Education w w w . g c e e . o r g
1. Structural 2. Cyclical 3. Frictional Unemployment
Demonstration Lesson #3 Unemployment