Economic Stability DMUG II- Sept 2008
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Economic Stability DMUG II- Sept 2008
Economic Stability DMUG II- Sept 2008
Delaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008el unit has undergone a rigorous peer review and jurying process to ensure alignment to selected Delaware Content Standards.Unit Title: Economic stabilityDesigned by:District-Content Area: Social StudiesGrade Level(s): 9-12Summary of Unit(Includes text from the Delaware Social Studies Clarifications Economic Stability DMUG II- Sept 2008 Document)This unit focuses on the overarching question, "How can economic stability be achieved?" Unlike the study of individual markets, the total eEconomic Stability DMUG II- Sept 2008
conomy is the sum of all markets in a society. Understanding involves the ability on the part of the students to analyze how changes in one market wilDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008f an economy. Economists have come to refer to these changes in economic activity over time as the business cycle. The length of the cycle varies and reflects the decisions consumers, producers, and governments make and the impact these decisions have on an economy.There are four parts to any busine Economic Stability DMUG II- Sept 2008ss cycle (using the Great Depression as an example):•Peak - the highest point gross domestic product (GDP) achieves. (The economy hit its peak in OctoEconomic Stability DMUG II- Sept 2008
ber 1929.)* *•Recession - the period during which GDP declines. There must be at least six consecutive months of decline in the GDP to be called a recDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008an increase in GDP for a specific time period. Growth may increase slowly as in the 1930s or rapidly as in the 1990s.♦ The peak and the trough can only be determined in retrospect after the recession or expansion has begun.Within a business cycle, the economy will show symptoms of instability, fluct Economic Stability DMUG II- Sept 2008uating between periods of unemployment and inflation. For the most part, the unemployment rate rises during a recession and declines during an expansiEconomic Stability DMUG II- Sept 2008
on. In the 1970s, the United States experienced almost a decade of a condition known as "stagflation," during which both unemployment and inflation ocDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008ull employment? What does it mean to be unemployed? How are unemployment figures calculated? To be unemployed, a person has to be willing to, able to. and looking for work, but not be able to find it. The Bureau of Labor Statistics calls 64.000 households a month and asks a series of1questions to de Economic Stability DMUG II- Sept 2008termine the unemployment rate. It is not related to the number of people collecting unemployment. Consequently, many economists believe that the rateEconomic Stability DMUG II- Sept 2008
is too low due to the methods used to collect information and the fact that there are discouraged workers who have given up looking for a job.UnemployDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008 a downturn/recession in the economy that is reflected in the business cycle.B.Structural unemployment refers to people that do not have the skills to match the job openings that are available. Demand for the skills they have decline. Businesses trying to reduce costs eliminate jobs. Time is require Economic Stability DMUG II- Sept 2008d for many workers to retrain and find new jobs.c. Frictional unemployment refers to workers who are between jobs. Examples of this range from those wEconomic Stability DMUG II- Sept 2008
ho have just graduated from high school or college to someone whose spouse has been transferred and has not yet found a new job to someone who was unhDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008the type of job they have. For example, landscapers have to find alternatives during the winter months, or summer resorts close down in September and other jobs are not available there. Construction workers and farm labor have to contend with the weather as a factor in whether or not they are employ Economic Stability DMUG II- Sept 2008ed. Knowing that the weather will change and that the season comes around yearly, causes workers in these fields to find other intermittent employmentEconomic Stability DMUG II- Sept 2008
or to live off savings during the off-season.E.Technological unemployment refers to technological change and innovation creating new goods and servicDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008to find jobs that will allow them to maintain their standard of living. Some might choose not to retrain.Unemployment reduces household income, which creates less demand for goods and services. More people may be laid off and there is another round of decreasing income to households. Less income cre Economic Stability DMUG II- Sept 2008ates less tax revenue, which may result in a lower level of public goods and services and the jobs related to their delivery.During an expansionary phEconomic Stability DMUG II- Sept 2008
ase of the business cycle, characterized by economic growth, the possibility of Inflation exists. Defined as an increase in the overall level of priceDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008clines for many people. Two root causes of inflation are demand-pull and cost-push. In the first scenario, the economy is considered to be overheated and that "too much money is chasing too few goods." What does this mean? Productive resources in an economy are being used to their fullest capacity a Economic Stability DMUG II- Sept 2008nd choices are made by markets as to how to use them, so there is upward pressure on prices to determine who will get the goods and services. IncomesEconomic Stability DMUG II- Sept 2008
are higher than the amount of goods and services available so prices rise. In the cost-push scenario, the costs of productive resources rise, pushing Delaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008s the inflation of the 1970s caused by the rapid increase in oil prices. Not only did gasoline prices increase for consumers, but the cost of transporting goods rose quickly.Since oil is also the base for many other products like plastics, fibers, pharmaceuticals, etc., their cost increased. Consume Economic Stability DMUG II- Sept 2008rs whose incomes did not keep pace with the price increases found their real purchasing power declining.2There are gainers and losers during an inflatEconomic Stability DMUG II- Sept 2008
ionary spiral. If one is a saver, the value of savings declines if the interest rate received does not stay ahead of the inflation rate. A person withDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008uy less than when he lent the money. On the other hand, a borrower gains because they have received the goods or services at the lower price, and they pay back in dollars worth less. People whose income rises faster than the inflation rate gain, as do those whose assets increase in value faster than Economic Stability DMUG II- Sept 2008 the inflation rate.To combat the instability of inflation and recession, the Federal Reserve System (also known as "the Fed") and the federal governmEconomic Stability DMUG II- Sept 2008
ent use the tools of monetary and fiscal policy, respectively. The goals of the Federal Reserve System are to promote economic growth, full employmentDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008lize the money supply. Acting as "the banker's bank," the Fed increases or decreases the money supply by providing incentives for banks to make (or not make) loans to businesses and households.The tools which the Fed uses to accomplish these goals include being able to set reserve requirements, the Economic Stability DMUG II- Sept 2008discount rate, and the federal funds rate target, and to conduct open market operations. The reserve requirement is the percentage of deposits a bankEconomic Stability DMUG II- Sept 2008
must keep as cash in their vault or on deposit at the Fed. Rarely is the reserve requirement altered because the impact of changing the money multipliDelaware Model Unit Gallery TemplateThis unit has been created as an exemplary model for teachers in (re)design of course curricula. An exemplary mode Economic Stability DMUG II- Sept 2008d for short-term borrowing at the discount window. The Fed also sets the target interest rate for federal funds, the interest that banks charge each other for short-term borrowing. The most often used tool of monetary policy is open market operations, the buying and selling of government securities Economic Stability DMUG II- Sept 2008to increase or decrease the money supply.If the economy is in recession, the Fed will take steps to increase the money supply by buying government secEconomic Stability DMUG II- Sept 2008
urities, lowering the discount and/or federal funds rate, and possibly lowering the reserve requirements. Increasing the money supply provides the banGọi ngay
Chat zalo
Facebook