Monday, December 20, 2010

Honors World History II: 21 December 2010

Current Events:

This clip from the documentary film "The Cartel," by Bob Bowdon, discusses the corruption occurring in some of New Jersey's Public Schools.

For more information, visit the film's website:

The Ch. 11 Make-Up Test is today.


Moodle - Nationalism

The Chapter 11 Section 3 The Age of Napoleon Make-Up Quiz is today.


#19. should have listed: "d) Anne Louise Germaine de Staël"

#20. do not answer, skip the question entirely, go on to #21.

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ABCya! Cf.


Revolutionary Outbursts

Greek soldiers

Reading Check


How did liberalism and nationalism begin to break through the conservative domination of Europe?

The Revolutions of 1848
Revolutionary France: Les Miserables


The backdrop for Victor Hugo's novel Les Miserables is revolutionary France in the 1800s. Les Miserables expresses Hugo's passionate belief in the spiritual possibilities of society, despite the presence of evil. Les Miserables also expresses Hugo's fight for justice, democratic ideals, and basic rights for all people.

What was the main theme of Hugo's novel Les Miserables?

What were Hugo's political beliefs?

Writing Practice

How do the choices made by Jean Valjean reflect his sense of justice and compassion for others?

Another French Revolution

Trouble in the German States


Note Taking
In-class assignment:

Recognize Sequence: keep track of the sequence of events that led to German unification by completing a chart like the one below. Add more boxes as needed.

Taking Initial Steps Toward Unity

In the early 1800s, German-speaking people lived in a number of small and medium-sized states as well as in Prussia and the Austrian Hapsburg empire. Napoleon’s invasions unleashed new forces in these territories.

Napoleon Raids German Lands

Between 1806 and 1812, Napoleon made important territorial changes in German-speaking lands. He annexed lands along the Rhine River for France. He dissolved the Holy Roman Empire by forcing the emperor of Austria to agree to the lesser title of king. He also organized a number of German states into the Rhine Confederation.

At first, some Germans welcomed the French emperor as a hero with enlightened, modern policies. He encouraged freeing the serfs, made trade easier, and abolished laws against Jews. However, not all Germans appreciated Napoleon and his changes. As people fought to free their lands from French rule, they began to demand a unified German state.

Napoleon’s defeat did not resolve the issue. At the Congress of Vienna, Metternich pointed out that a united Germany would require dismantling the government of each German state. Instead, the peacemakers created the German Confederation, a weak alliance headed by Austria.

Economic Changes Promote Unity

In the 1830s, Prussia created an economic union called the Zollverein (tsawl fur yn). It dismantled tariff barriers between many German states. Still, Germany remained politically fragmented.

In 1848, liberals meeting in the Frankfurt Assembly again demanded German political unity. They offered the throne of a united German state to Frederick William IV of Prussia. The Prussian ruler, however, rejected the notion of a throne offered by “the people.”


What was the German Confederation?

Revolutions in Central Europe
The Hungarian Parliament Passes Legislation Funding an Army Against the Hapsburg Empire, 1848

The mixed symbols on the flag of the Austro-Hungarian Empire

A Multinational Empire

Equally disturbing to the old order were the urgent demands of nationalists. The Hapsburgs presided over a multinational empire. Of its 50 million people at mid-century, fewer than a quarter were German-speaking Austrians. Almost half belonged to different Slavic groups, including Czechs, Slovaks, Poles, Ukrainians, Serbs, Croats, and Slovenes. Often, rival groups shared the same region. The empire also included large numbers of Hungarians and Italians. The Hapsburgs ignored nationalist demands as long as they could. When nationalist revolts broke out in 1848, the government crushed them.

Revolts in the Italian States
Italy Before 1861

Note Taking

Reading Skill: Recognize Sequence
In-class assignment:

As you read and hear a lecture on the Italian revolt, create a time line showing the sequence of events from 1831 to 1871 that led to Italian unification (the time line continues in the next section of the Chapter).

After a failed revolution against Austrian rule in northern Italy, many rebels, fearing retribution, begged for funds to pay for safe passage to Spain. Giuseppe Mazzini (mat see nee), still a boy, described his reaction to the situation:

“He (a rebel) held out a white handkerchief, merely saying, ‘For the refugees of Italy.’ My mother . . . dropped some money into the handkerchief. . . . That day was the first in which a confused idea presented itself to my mind . . . an idea that we Italians could and therefore ought to struggle for the liberty of our country. . . .”

—Giuseppe Mazzini, Life and Writings

Giuseppe Mazzini, 1:57

In-class assignment: individually, pick out one quote you find interesting and explain why.


Focus Question

How did influential leaders help to create a unified Italy?

Reading Check


What countries experienced revolutions in 1848?

Eyewitness to History

Revolutionary Excitement

Analyzing Primary Sources, p. 377
And, to anticipate further revolutionary developments, we will consider Karl Marx.

Chapter 12 Section 3 National Unification and the National State
Unification occurred at different times and in different forms throughout Europe and in North America. The Crimean War destroyed the Concert of Europe. A defeated Russia retreated from European affairs, and Austria was isolated. Italian and German nationalists exploited Austria's isolation. Both gained important territory in the Austro-Prussian War and the Franco-Prussian War, and a unified Germany and Italy emerged. Growing prosperity and expanded voting rights helped Great Britain avoid revolution in 1848. In 1852, the French voted to restore their empire. Louis-Napoleon became the authoritarian Napoleon III and ruled until France's defeat in the Franco-Prussian War. Austria granted Hungarians the right to govern their own domestic affairs. In Russia, Czar Alexander II freed the serfs and instituted other reforms. When a radical assassinated him, his son, Alexander III, reverted to repressive rule. The United States endured a costly civil war to settle the conflict over slavery between the Northern and Southern states. After two short rebellions, Canada won its independence from Great Britain.

Main Ideas

The rise of nationalism contributed to the unification of Italy and Germany.

While nationalism had great appeal, not all people achieved the goal of establishing their own national states.

Key Terms







Otto von Bismarck

Otto von Bismarck The Iron Chancellor 1815-1898, 4:36

The rise and fall of Prussia, 4:36

In-class assignment: with a partner, consider the rise and fall of Prussia.

What are the five modern great powers?

Which is the only one that disappeared from Europe?

In what year did Prussia gain independence from the State of the Teutonic Order?

What is Prussia's great rival?

What exactly was Prussia?

Where was it located?

Why did it disappear?

Some traces of Prussia in history:
- the Iron Cross
- the Prussian mentality can be seen back in the present-day Germans
- the black and white colours in German national football team (black and white are colours of the Prussian flag)
- Borussia Dortmund (Borussia is the Latin name for Prussia )
- Prussian blue

Prussia was one of the five modern great powers. The other great powers were Austria, France, Russia and the United Kingdom. Prussia is the only country of these which disappeared from the European map. The Prussian borders changed very often. In 1525 Prussia gained independence from the State of the Teutonic Order.

Prussia had a great influence on German and European history. Its rival was Austria, because Prussia and Austria both wanted to control the rest of Germany.

Prussia was located in northern, central Europe. After Bismarck, Prussia was incorporated into a greater Germany.

Quotes from Bismarck, 3:49

In-class assignment: individually, pick out one quote you find interesting and explain why.





Industrial Europe ca. 1850

Breakdown of the Concert of Europe
War and Civilization, Crimea, War, technology, and Industry, Blood & Iron
Reading Check


How did the Crimean War destroy the Concert of Europe?

Italian Unification
Interactive Map Unifying Italy

For: Interactive timeline
Web Code: nap-2232

Reading Check


How did Giuseppe Garibaldi contribute to Italian unification?

German Unification

Bismarck pictured greeting representatives at the Congress of Berlin.

Note Taking

Reading Skill: Recognize Sequence

Keep track of the sequence of events described in this section by completing a chart like the one below. List the causes that led to a strong German nation.

The Price of Nationalism Audio: Germany

The last half of the 1800s can be called the Age of Nationalism. By harnessing national feeling, European leaders fought ruthlessly to create strong, unified nations. Under Otto von Bismarck, Germany emerged as Europe’s most powerful empire—but at a considerable cost. In his 1870 diary, Crown Prince Friedrich wrote:

“[Germany had once been admired as a] nation of thinkers and philosophers, poets and artists, idealists and enthusiasts . . . [but now the world saw Germany as] a nation of conquerors and destroyers, to which no pledged word, no treaty, is sacred. . . . We are neither loved nor respected, but only feared.”
Bismarck: Germany From Blood and Iron (clip), 1:39

Blood and Iron: Audio

Otto von Bismarck succeeded where others had failed. Bismarck came from Prussia’s Junker (yoong kur) class, made up of conservative landowning nobles. Bismarck first served Prussia as a diplomat in Russia and France. In 1862, King William I made him prime minister. Within a decade, the new prime minister had become chancellor, or the highest official of a monarch, and had used his policy of “blood and iron” to unite the German states under Prussian rule.

Bismarck Unites Germany: Audio
Prussian legislators waited restlessly for Otto von Bismarck to speak. He wanted them to vote for more money to build up the army. Liberal members opposed the move. Bismarck rose and dismissed their concerns:

“Germany does not look to Prussia’s liberalism, but to her power. . . . The great questions of the day are not to be decided by speeches and majority resolutions—that was the mistake of 1848 and 1849—but by blood and iron!”

—Otto von Bismarck, 1862


Unification of Germany, 1865–1871

Go Online
For: Audio guided tour
Web Code: nap-2211

1. Locate

To the East? West? Near what countries? Bodies of water, etc.

a) Prussia; b) Silesia; c) Bavaria; d) Schleswig

2. Region

What are did Prussia add to its territory in 1866?

3. Analyzing Information

Why do you think Austrian influence was greater among the southern German states than among the northern ones?

This map is titled “Unification of Germany, 1865 to 1871.” A circular image below the title to the right gives a global view of the map area.

The map extends north-south from Denmark and Sweden to the Mediterranean Sea. The map extends east-west from Russia to central France. A Key at the right shows the following shading and symbols: yellow shading; Prussia, 1865; light green shading, Added to Prussia, 1866; dark green shading, Added to form North German Confederation, 1867; orange shading, Added to form German empire, 1871; red line, Boundary of German empire, 1871;

red explosion symbol, Battle sites; orange arrow, Route of Prussian armies in Austro-Prussian War; and green arrow, Route of German armies in Franco-Prussian War.

The boundary of the German empire in 1871, indicated by a red line, borders the North Sea, Denmark, and the Baltic Sea in the north, Russia and Austria-Hungary in the east, Switzerland in the south, and France, Luxembourg, Belgium, and the Netherlands in the west. Prussia in 1865, shaded in yellow, includes the western province of Westphalia. Another large yellow-shaded area appears in the north and east. Brandenburg, including the city of Berlin, is in the center. The provinces of Pomerania, West Prussia, and East Prussia are in the northeast. Posen is in the East, and Silesia is in the southeast. Two other small yellow areas appear in the center. Another small yellow area, labeled Hohenzollern, appears in the south. The area added to Prussia in 1866, shaded in light green, includes the northwest area bordering the Netherlands and Denmark.

The province of Schleswig is in today’s southern Denmark. Holstein is south of Schleswig. The city of Hamburg and the province of Hanover are south of Holstein. Another light green area appears in the center. The cities of Ems, east of the Rhine River, and Frankfurt to the southeast are in this area. The area added to form the North German Confederation in 1867, shaded in dark green, appears in the north between the light green and yellow areas. It is labeled Mecklenburg. Another dark green area appears in the center on the Austria-Hungary border. The provinces of Thuringia and Saxony are in this area. Other green areas are scattered throughout the center. The area added to form the German empire in 1871, shaded in orange, includes southern Germany. Lorraine, including the city of Metz, and Alsace are in the west, bordering France. Württemberg is in the center, Baden is in the south, and Bavaria, including the city of Munich, is in the east. Orange arrows extend from the Saxony and Silesia regions across the Austria-Hungary border to Sadowa. A red battle symbol appears here. Green arrows extend from Lorraine, through Metz, across the French border to Sedan. A battle symbol appears here. The arrows extend westward toward Paris.


Focus Question

How did Otto von Bismarck, the Chancellor of Prussia, lead the drive for German unity?

Master of Realpolitik

Bismarck’s success was due in part to his strong will. He was a master of Realpolitik (ray ahl poh lee teek), or realistic politics based on the needs of the state. In the case of Realpolitik, power was more important than principles.

Although Bismarck was the architect of German unity, he was not really a German nationalist. His primary loyalty was to the Hohenzollerns (hoh un tsawl urnz), the ruling dynasty of Prussia, who represented a powerful, traditional monarchy. Through unification, he hoped to bring more power to the Hohenzollerns.

Royal house medal of the Hohenzollerns

Strengthening the Army

As Prussia’s prime minister, Bismarck first moved to build up the Prussian army. Despite his “blood and iron” speech, the liberal legislature refused to vote for funds for the military. In response, Bismarck strengthened the army with money that had been collected for other purposes. With a powerful, well-equipped military, he was then ready to pursue an aggressive foreign policy. Over the next decade, Bismarck led Prussia into three wars. Each war increased Prussian prestige and power and paved the way for German unity.

Prussia Declares War With Denmark and Austria
Bismarck’s first maneuver was to form an alliance in 1864 with Austria. Prussia and Austria then seized the provinces of Schleswig and Holstein from Denmark. After a brief war, Prussia and Austria “liberated” the two provinces and divided up the spoils. Austria was to administer Holstein and Prussia was to administer Schleswig.

In 1866, Bismarck invented an excuse to attack Austria. The Austro-Prussian War lasted just seven weeks and ended in a decisive Prussian victory. Prussia then annexed, or took control of, several other north German states.

Bismarck dissolved the Austrian-led German Confederation and created a new confederation dominated by Prussia. He allowed Austria and four other southern German states to remain independent. Bismarck’s motives, as always, were strictly practical. “We had to avoid leaving behind any desire for revenge,” he later wrote.

Primary Source

War and Power

In 1866, Field Marshal Helmuth von Moltke analyzed the importance of Prussia’s war against Austria. Why, according to von Moltke, did Prussia go to war against Austria?

Primary Source

“The war of 1866 was entered on not because the existence of Prussia was threatened, nor was it caused by public opinion and the voice of the people; it was a struggle, long foreseen and calmly prepared for, recognized as a necessity by the Cabinet, not for territorial expansion, for an extension of our domain, or for material advantage, but for an ideal end—the establishment of power. Not a foot of land was exacted from Austria. . . . Its center of gravity lay out of Germany; Prussia’s lay within it. Prussia felt itself called upon and strong enough to assume the leadership of the German races.”

France Declares War on Prussia

In France, the Prussian victory over Austria angered Napoleon III. A growing rivalry between the two nations led to the Franco-Prussian War of 1870.
Franco-Prussian War (1870), 6:10

The causes of the Franco-Prussian War are rooted in the shifting balance of power in Europe after the Napoleonic wars. France and Prussia had fought against each other, with France beating Prussia in 1806, then losing in 1813-1815. In the following decades, Prussia was generally considered by the French as a modern, enlightened country. Republicans particularly favoured the prospect of seeing the German nation unite under Prussian leadership, displacing the old, catholic Austrian empire. Prussia hold similar views, but cultivated an image of France as the hereditary enemy: Prussia was to replace Austria as the head of Germany, and to replace France as the leader in continental Europe.

Napoleon III became emperor in France thanks to a coup in 1851. He initially supported the German unification policy of Otto von Bismarck, chancellor of Prussia under king Wilhelm I. It was only after the Austro-Prussian war of 1866 that France began to worry about the fast-rising Prussian power. To be able to face the Prussian conscription-based army, military reform was debated in the French parliament, but refused by the Left which considered there was no danger of war.

In July 1870, a diplomatic crisis broke, Bismarck managed to provoke the French into declaring war to Prussia — and French diplomacy fell in the trap.

Germans recalled only too well the invasions of Napoleon I some 60 years earlier. Bismarck played up the image of the French menace to spur German nationalism. For his part, Napoleon III did little to avoid war, hoping to mask problems at home with military glory.

Bismarck furthered the crisis by rewriting and then releasing to the press a telegram that reported on a meeting between King William I and the French ambassador. Bismarck’s editing of the “Ems dispatch” made it seem that William I had insulted the Frenchman. Furious, Napoleon III declared war on Prussia, as Bismarck had hoped.

Vocabulary Builder

edit—(ed it) v. to make additions, deletions, or other changes to a piece of writing

A superior Prussian force, supported by troops from other German states, smashed the badly organized and poorly supplied French soldiers. Napoleon III, old and ill, surrendered within a few weeks. France had to accept a humiliating peace.

France had a good professional army, which was indeed able to face the Prussians. But a decisive strategic surprise came when all German states took side with Prussia: The French were overwhelmed, outmaneuvered and, in spite of ferocious combats, finally beaten. After Sept. 4th, the new Republic refused to sign an armistice, managed to hastily improvise "armies" out of civilian volunteers, but these were no match for the well-trained Prussians. The war ended when Parisians, besieged, bombarded and starved, surrendered.

The Prussian Army held a brief victory parade in Paris on 17 February, 1871, and Bismarck honoured the armistice by sending trainloads of food into Paris and moving Prussian forces to the east of the city. Prussian armies would occupy parts of France until the French completed the payment of a five-billion francs war indemnity. Then, they would withdraw to Alsace and Lorraine. An exodus occurred from Paris as some 200,000 people, predominantly middle-class, left the city for the countryside. Paris was quickly re-supplied with free food and fuel by the United Kingdom and several accounts recall life in the city settling back to normal.

The war ended up with a complete triumph for Prussia, whose king was proclaimed emperor of Germany in the palace of Versailles — a supreme humiliation of the French and a Prussian revenge on Napoleon's victorious march in Berlin.
The Treaty of Frankfurt gave Germany Alsace and the northern portion of Lorraine (Moselle), where Germanic dialects were spoken by parts of the population. Most importantly, Germany now possessed Metz, a key fortified stronghold between the two countries. Part of the Alsacians refused to live under German rule and emigrated to "inner France".

The loss of this territory was a source of resentment in France for years to come, and revanchism even inspired an attempted coup in Paris in the 1880s. Yet, by 1900, new generations tended to consider it old history, while Alsacians adapted more or less reluctantly to German rule [see Barrès "Au service de l'Allemagne"]. No French political party put forward a reconquest of Alsace-Lorraine in its program. Compensations were found in colonization abroad. When World War I broke out, the French mobilized with the idea to defend their territory as it was, not to take back Alsace-Lorraine, as soldiers' diaries and letters indicate.

Had Germany not taken the option of war in 1914, its successful path paved by the 1870 triumph would have led it to become peacefully the uncontested leader in Europe.


What techniques did Bismarck use to unify the German states?

Birth of the German Empire: Audio

Delighted by the victory over France, princes from the southern German states and the North German Confederation persuaded William I of Prussia to take the title kaiser (ky zur), or emperor. In January 1871, German nationalists celebrated the birth of the Second Reich, or empire. They called it that because they considered it heir to the Holy Roman Empire.

A constitution drafted by Bismarck set up a two-house legislature. The Bundesrat (boon dus raht), or upper house, was appointed by the rulers of the German states. The Reichstag (ryks tahg), or lower house, was elected by universal male suffrage. Because the Bundesrat could veto any decisions of the Reichstag, real power remained in the hands of the emperor and his chancellor.


How was the new German government, drafted by Bismarck, structured?

The New German Empire


In 1870, German historian Heinrich von Treitschke (vawn trych kuh) wrote a newspaper article demanding the annexation of Alsace and Lorraine from France. A year later, annexation became a condition of the peace settlement in the Franco-­Prussian War:

“The sense of justice to Germany demands the lessening of France. . . . These territories are ours by the right of the sword, and . . . [by] virtue of a higher right—the right of the German nation, which will not permit its lost children to remain strangers to the German Empire.”


Focus Question

How did Germany increase its power after unifying in 1871?

In January 1871, German princes gathered in the glittering Hall of Mirrors at the French palace of Versailles. They had just defeated Napoleon III in the Franco-Prussian War. Once home to French kings, the palace seemed the perfect place to proclaim the new German empire. To the winners as well as to the losers, the symbolism was clear: French domination of Europe had ended. Germany was now the dominant power in Europe.

Reading Check


What events led to German unification?
A Political Game of Chess

This political cartoon shows Otto von Bismarck and Pope Pius IX trying to checkmate each other in a game of chess.

1. How does this cartoon reflect the relationship between Bismarck and the Catholic Church?

2. How did the conflict between church and state affect German politics in the 1870s?

On the domestic front, Bismarck applied the same ruthless methods he had used to achieve unification. The Iron Chancellor, as he was called, sought to erase local loyalties and crush all opposition to the imperial state. He targeted two groups—the Catholic Church and the Socialists. In his view, both posed a threat to the new German state.
Crankshaw, one of Bismarck's biographers, describes the tragedy of Bismarck. It is not that he "subordinated morality to the supposed needs of the state," many politicians do that; it is that "his countrymen surrendered to the principle (pp. 413-414)."

The German people saw it happening and lacked the will to stop it. Bismarck and the people each corrupted the other. To say that Bismarck was a direct precursor of Hitler is evidently untrue; but it is not untrue, I think, to say that those aspects of the German character which made it possible for Bismarck to rule for just on thirty years were those same aspects which made it too easy for a Hitler to take power and keep it (p. 414).

Nationalism and Reform in Europe

Great Britain


The Austrian Empire

Although serfdom had almost disappeared in Western Europe by the 1700s, it survived in Russia. Masters exercised almost total power over their serfs. A noble turned revolutionary described the treatment of the serfs:

“I heard . . . stories of men and women torn from their families and their villages, and sold, or lost in gambling, or exchanged for a couple of hunting dogs, and then transported to some remote part of Russia to create a [master’s] new estate; of children taken from their parents and sold to cruel . . . masters.”

—Peter Kropotkin, Memoirs of a Revolutionist


Focus Question

Why did industrialization and reform come more slowly to Russia than to Western Europe?
Reading Check


How was Great Britain able to avoid a revolution in 1848?

Nationalism in the United States

Graphic Notes: "Downfall of Mother Bank," depicting President Andrew Jackson holding up an "Order of the Removal of the Public Money" during the fight over the Bank of the United States, 1833. E.W. Clay lithograph.

Citation: American Antiquarian Society, 185 Salisbury St, Worcester, MA 01609-1634 and the Library of Congress.

Nicholas Biddle was the president of the Bank of the United States during the Bank War of 1832. Biddle held a great deal of unwarranted power over the nation’s finances, which President Jackson resented. When Jackson vetoed a bill to renew the Bank’s charter, Biddle agreed with Senator Henry Clay that this would hurt him in the upcoming presidential election of 1832, but both of them were proven wrong. When Jackson tried to end the bank by withdrawing deposits, Biddle caused a financial panic to try and prevent Jackson from attaining the presidency which failed when Jackson was re-elected.
The Bank War began with Senators Noah Webster and Clay with their Recharter Bill: Clay and Webster presented Congress with a Recharter Bill for the Bank of the United States in 1832. Although four years before the charter would expire, Clay hoped to make the Bank an issue in the upcoming presidential election, which he hoped to win. Clay hoped to quickly pass the Bill in Congress, then send it to the White House to be signed by Jackson. Clay knew Jackson would most likely veto the bill, alienating the elite in the upcoming election, therefore favoring Clay. Jackson did veto the bill, but contrary to Clay’s expectation, gained popular public support for his statement.

The “Pet” banks where surplus federal funds were placed after the closing of the Bank of the United States. The banks were chosen for their support of president Jackson and soon flooded the country with paper money as there was no longer a central, federal finance institution. As a result of the massive amounts of paper money, inflation skyrocketed, and Jackson was forced to try to slow inflation with his Specie Circular.

The Specie Circular (1836) was decreed by Jackson which stated that all public lands had to be purchased with “hard” money, gold or silver. Jackson took this measure to slow the runaway inflation caused by his closure of the Bank of the United States.

Reading Check


How did the election of Andrew Jackson influence American politics?
The divisions between Americans eventually led to fighting in the Civil War.

You can learn more about music from the period by listening to:
"When Johnny Comes Marching Home." In this exercise you can 1) view the exhibit; 2) read the lyrics; 3) learn more; and, 4) rewrite the song.

The Emergence of a Canadian Nation

Reading Check


How did the British North American Act change the government of Canada?

Map: The Dominion of Canada in the Nineteenth Century

A novel about the Crimean War:

Master George by Beryl Bainbridge
Visit an interactive exhibit about the gold rush.

The American Civil War.

Everyday life of a Civil War soldier

Civil War diary accounts

The Civil War: A Film by Ken Burns

Short animated movie about the American Civil War

New holiday feature: keep Christ in Christmas

Unification of Germany, 1865–1871

Go Online
For: Audio guided tour
Web Code: nap-2211

1. Locate

To the East? West? Near what countries? Bodies of water, etc.

a) Prussia; b) Silesia; c) Bavaria; d) Schleswig

2. Region

What are did Prussia add to its territory in 1866?

3. Analyzing Information

Why do you think Austrian influence was greater among the southern German states than among the northern ones?

New holiday feature: keep Christ in Christmas

Vocal by Stan Freberg in 1955. Animated in 2009.

HW: email (or hard copy) me at

Tuesday HW

1. p. 385, #9; p. 386, Applying the Skill.

Honors Business Economics: 21 December 2010

Current Events (split between today and tomorrow due to length "harsh realities"):

The Ch. 3 Sec. 2 Quiz Make-Up is today:


The Make-Up for the Chapter 3 Section 1 Quiz is today.

The Chapter 2 Make-Up Test is today.


The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.

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Please follow the steps below:

Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Password: 10888

Ch. 5

Law of Supply

In-class assignment: in your own words, define demand. What is the Law of supply? How does demand relate to supply? Graph out a sample Law of supply.

Supply curve video

In-class assignment: define supply curve. In your own words, describe a supply curve.

Draw a supply curve graph by following the video.

Use the market for cars as your example.

Who needs to be willing and able?

What do suppliers want?

What do consumers want?

What happens when cars are more expensive?

What happens when there is a change in price?

What happens to demand?

market supply curve

In-class assignment: in your own words, define market supply (long run supply curve).

Long Run Supply Curve

Economic growth means the economy’s potential output is rising. Because the long-run aggregate supply curve is a vertical line at the economy’s potential, we can depict the process of economic growth as one in which the long-run aggregate supply curve shifts to the right.


Because economic growth is the process through which the economy’s potential output is increased, we can depict it as a series of rightward shifts in the long-run aggregate supply curve. Notice that with exponential growth, each successive shift in LRAS is larger and larger.

As illustrated in this graph, “Economic Growth and the Long-Run Aggregate Supply Curve” illustrates the process of economic growth. If the economy begins at potential output of Y1, growth increases this potential. The figure shows a succession of increases in potential to Y2, then Y3, and Y4. If the economy is growing at a particular percentage rate, and if the levels shown represent successive years, then the size of the increases will become larger and larger, as indicated in the figure.

Because economic growth can be considered as a process in which the long-run aggregate supply curve shifts to the right, and because output tends to remain close to this curve, it is important to gain a deeper understanding of what determines long-run aggregate supply (LRAS).

The Aggregate Production Function

An aggregate production function relates the total output of an economy to the total amount of labor employed in the economy, all other determinants of production (capital, natural resources, and technology) being unchanged. relates the total output of an economy to the total amount of labor employed in the economy, all other determinants of production (that is, capital, natural resources, and technology) being unchanged. An economy operating on its aggregate production function is producing its potential level of output.

Key Takeaways

*The aggregate production function relates the level of employment to the level of real GDP produced per period.
*The real wage and the natural level of employment are determined by the intersection of the demand and supply curves for labor. Potential output is given by the point on the aggregate production function corresponding to the natural level of employment. This output level is the same as that shown by the long-run aggregate supply curve.

*Economic growth can be shown as a series of shifts to the right in LRAS. Such shifts require either upward shifts in the production function or increases in demand for or supply of labor.
“Increase in the Supply of Labor and the Long-Run Aggregate Supply Curve”

In-class assignment: Try It! With a partner, you will try your hand.

Suppose that the quantity of labor supplied is 50 million workers when the real wage is $20,000 per year and that potential output is $2,000 billion per year. Draw a three-panel graph similar to the one presented above in, “Increase in the Supply of Labor and the Long-Run Aggregate Supply Curve” to show the economy’s long-run equilibrium. Panel (a) of your graph should show the demand and supply curves for labor, Panel (b) should show the aggregate production function, and Panel (c) should show the long-run aggregate supply curve. Now suppose a technological change increases the economy’s output with the same quantity of labor as before to $2,200 billion, and the real wage rises to $21,500. In response, the quantity of labor supplied increases to 51 million workers. In the same three panels you have already drawn, sketch the new curves that result from this change. Explain what happens to the level of employment, the level of potential output, and the long-run aggregate supply curve. (Hint: you have information for only one point on each of the curves you draw—two for the supply of labor; simply draw curves of the appropriate shape. Do not worry about getting the scale correct.)

Answer to Try It! Problem

The production function in Panel (b) shifts up to PF2. Because it reflects greater productivity of labor, firms will increase their demand for labor, and the demand curve for labor shifts to D2 in Panel (a). LRAS1 shifts to LRAS2 in Panel (c). Employment and potential output rise. Potential output will be greater than $2,200 billion.


quantity supplied

change in quantity supplied

change in supply

Changes in Supply, 4:39

In-class assignment, working with a partner, answer the following questions:

What do we mean by changes in supply?
Why do changes in supply occur?
What happens when supply decreases?
How do market forces effect supply after supply decreases?
What happens when supply increases?
How do market forces effect supply after supply increases?
What determines supply?


supply elasticity

Gas Prices, Gas Gouging, Peak Oil, Elasticity, Supply Demand, 1:17

Gasoline gas prices are based on oil prices. Oil prices are determined by the oil supply and oil demand. Right now, both oil supply and oil demand are almost inelastic. As gasoline gas and oil prices go up, the demand stays almost the same. As the oil supply reaches peak oil or maximum production or extraction, the demand curve becomes vertical, or inelastic. The inelasticity of the oil supply and oil demand set things up for price volatility of both oil and gasoline. The seasonal changes in gas and oil prices we've seen in the last three years is probably due to reaching peak oil. This short screencast shows an inelastic oil supply curve, as well as an inelastic oil demand curve, and what happens to prices as the oil supply or oil demand change.

Academic Vocabulary

Chapter 3 Prep

Chapter 3: Business Organizations


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Tuesday HW

1. p. 112, #23-25.