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The Chapter 12 Section 3 Quiz Make-up is today.
The Chapter 12 Section 2 Quiz Make-up is today.
Cross out "f."
The Chapter 12 Section 1 Quiz Make-up is today.
The Chapter 11 Test Make-up is today.
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The Quiz 9.(4) Prep Page is available.
For the Make-up Quiz, consider the material found in Chapter 9 Section 3:
minimum tax, VAT (Value-Added Tax), flat tax, federal tax reform, business taxes, profits, tax burden, personal income rate, depreciation, investment tax credit, and, capital gains.
Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+9+Section+4+Quiz+Prep+Page+Spring+2011
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Unit 4 Macroeconomics: Performance and Stabilization
Chapter 12 Macroeconomic Performance
7th
The Global Economy and You
Global Fruit
p. 351, 1. What country is the largest buyer of U.S. FRUIT?
2. What are concerns about shipping fresh fruit from other countries?
3. What fruit is available because of global trade?
Preview
Chapter 13
Economic Instability
Section 1 Business Cycles and Fluctuations
Business fluctuations and cycles interrupt economic growth. Business cycles are the regular ups and downs of real GDP. There are many factors that influence business cycles: changes in investment spending, innovation and imitation, monetary policy decisions, and external stocks. The Great Depression of the 1930s was the worst economic decline in United States history. The economy has been much more stable since World War II with a series of short, mild recessions. While seemingly unavoidable, business cycles can be anticipated with tools such as econometric models and statistical series such as the index of leading indicators.
Web Activity
http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit4/chapter13/student_web_activities.html
business cycles
4th
In-class assignment, with a partner, answer the questions.
The business cycle described here preceded the recession.
How does the business press characterize the economy?
What happened by the March of 2000?
Are we in a new economy hereafter?
What factors do we need to consider?
What is the multiplier effect?
What elements are part of the business cycle?
How does the cycle work (when working well)?
http://www.youtube.com/watch?v=E2p3Qr97oqE
Economics: The Future of the Business Cycle, 4:34
business fluctuations
recession
In-class assignment, with a partner, answer the questions.
Economics Professor on Recession, Unemployment & Consumer Spending, 3:13
What's wrong with the 2010 economy?
What are some of the near issues that affect unemployment?
What about the renewed Real Estate Tax Credit Extensions?
What are you seeing business owners doing?
Your thoughts on consumer spending?
How do we get out of recession?
peak
trough
expansion
In-class assignment, with a partner, answer the questions.
On YouTube
The Conversation: Understanding China's Expansion, 2:03
What people are attracted to Asia?
What elements are needed for expansion?
What is China trying?
http://www.youtube.com/watch?v=mB-9TNv04cY
Tony Chan from Hong Kong University explains China's massive growth.
trend line
depression
depression scrip
leading economic indicator
In-class assignment, with a partner, answer the questions.
Economics: Index of Leading Economic Indicators, 4:34
What is your best source?
What is the most famous?
What is it?
What does it indicate?
How long ahead does it project?
What does it figure out?
What behaviors indicate the direction of the economy?
How many leading indicators are there?
Name a few of the indicators.
composite index of leading economic indicators
econometric model
In-class assignment, with a partner, answer the question.
13.1 Reading Strategy
Complete the graphic organizer by identifying factors that can cause changes in the business cycle.
Issues in the News
Economic Growth Totters
Business Cycles: Characteristics and Causes
In-class assignment, with a partner, answer the following.
When does a cycle begin and end?
What are the phases?
If the economy continues to expand; what is this called?
13.1 Business Cycles
http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p354.swf
Phases of the Business Cycle
Changes in Investment Spending
Innovation and Imitation
Monetary Policy Decisions
External Shocks
In-class
Reading Check
Summarizing
What are thought to be the cause of business cycles?
Business Cycles in the United States
The Great Depression
Causes of the Great Depression
Recovery and Legislation
Cycles After World War II
In-class
Inferring
What impact did the Great Depression have on the United States?
In-class
13.2 Index of Leading Economic Indicators
http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p358.swf
What can the Index show?
What can it predict?
On average, how many months before a recession begins does the Index indicate it?
How many months before a recovery begins does the Index reveal this?
Forecasting Business Cycles
Using Everyday Economic Statistics
Using Econometric Models
In-class
Reading Check
Analyzing
Why are short-term econometric models more accurate than long-term models?
13.1 Review
In-class assignment, with a partner, answer the question.
Use the graphic organizer to identify the causes and effects of the Great Depression.
Business Week
News clip
Dog Days: A Frank Look at the Economy
Section 2: Inflation
Inflation is the increase in the general level of prices of goods and services. Several price indexes are used to measure inflation. Consumer price index (CPI) is a statistical series that tracks monthly changes in the prices paid by urban consumers for a representative "basket" of goods and services. Another index is the producer price index (PPI), which is a monthly series that reports prices received by domestic producers. Causes of inflation include strong demand, rising costs, and wage-price spirals, along with a growing supply of money. Therefore, inflation can reduce purchasing power, distort spending, and affect the distribution of income.
inflation
UNDERSTANDING ECONOMICS: INFLATION, 6:32
In-class
What is inflation?
What is the most effective tool used to gauge the level of inflation?
What are the two types of inflation?
How is each defined?
How does the government attempt to combat inflation?
Define the attempts.
What is deflation?
What is stagflation?
What is hyperinflation?
Text from vid:
Inflation is defined as an overall increase in the price level. Or, in other words, an overall decrease in the purchasing power of the dollar.
When inflation occurs, currency buys fewer goods and services.
The most effective tool used to gauge the level of inflation is the Consumer Price Index, or CPI.
The Consumer Price Index is a basket of about 400 commonly purchased goods and services that is used to represent overall consumption.
Each month, the Department of Labor checks the prices of these 400 different items in 85 areas all over the U.S.
Inflation exists when the average cost of the items is rising. If the average cost of these items remains the same, there is no inflation, even though most likely the prices went up on some of the items, while the prices went down on others.
The overall percentage of increase or decrease of cost for these items from year to year is the annual inflation rate.
Well cover the Consumer Price Index in greater detail in a later video.
There are two types of inflation: demand-pull inflation and cost-push inflation.
Demand-pull inflation occurs when the demand for goods and services increases faster than the supply of goods and services. This increase in demand could come from increases in the money supply, or increases in the amount of money government spends.
Demand-pull inflation is sometimes described as too much money chasing too few goods.
When demand increases, there would be a shortage of many items if prices stayed at the same level. However, prices will not stay at the same level.
When theres a shortage of something, the price on that item will rise until it hits an equilibrium. This causes a rise in the overall average of prices.
Cost-push inflation happens when there is an increase in the cost to produce goods and services. These increased production costs could be increases in the cost of raw materials, energy, or any other item used in production.
There also could be increases in wages. This is sometimes referred to as wage-push inflation, or the price-wage spiral.
The government attempts to combat inflation using fiscal policy and monetary policy.
Fiscal policy is the use of the governments taxing and spending powers to attempt to accomplish economic pulls. Fiscal policy can be used to decrease spending to reduce demand-pull inflation.
Government can reduce total spending by reducing its own spending. It could also reduce overall spending by raising taxes, which leaves consumers with less money to spend on goods and services.
Monetary policy involves the changing of interest rates and availability of loans to attempt to accomplish economic goals.
The Fed can reduce spending by raising interest rates and making loans harder to obtain, which in turn reduces demand-pull inflation.
Inflation can never be totally eliminated. Furthermore, efforts to reduce inflation tends to cause unemployment, just like efforts to reduce unemployment tends to cause inflation.
Because of this tradeoff, policymakers have to struggle with which is worse when making policy decisions.
Should they attempt to reduce inflation at the cost of higher unemployment? Should they attempt to reduce unemployment at the cost of higher inflation?
These questions are the subject of much debate among economists. And while these policies might work good in theory, its safe to argue that theyre not as effective as one might hope.
There are some other terms worth mentioning briefly. The first is deflation.
Deflation is defined as the general drop in the price level. Or, to put it another way, an increase in the purchasing power of the dollar.
Deflation occurs during recessions when the GDP is declining.
Because of the decline in demand, sellers must reduce their prices to attract buyers, which causes an overall price decrease, also known as deflation.
Music:
Danse Macabre - Low Strings Finale (Theme)
Witch Hunt
Dangerous
Crisis
Gustav Sting
Home Base Grove
by Kevin MacLeod
incompetech.com
deflation
price index
consumer price index (CPI)
market basket
base year
Resources
Overviews
http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit4/chapter13/chapter_overviews.html
Student Web Activity
http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit4/chapter13/student_web_activities.html
In Motion
13.1 Business Cycles
http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p354.swf
13.2 Index of Leading Economic Indicators
http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p358.swf
13.7 Measuring Consumer Discomfort
http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p374.swf
Crossword Puzzle
http://www.glencoe.com/sec/socialstudies/tutor/economics/econprinciples2005/puzzles/epp2005_13.html
Flashcards
http://www.glencoe.com/qe/efcsec.php?qi=15463
Ch. 13 Multiple-choice Quiz
http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit4/chapter13/self-check_quizzes.html
Wisconsin Labor Protests - Noodles, 1:36
Homemaking Knowledge Contributes To The Enrichment of Life, 9:19
From the "Why Study Home Economics?" (1955); Two teenage girls learn how a knowledge of homemaking can contribute to the enrichment of life. They also learn about the vocational opportunities available to home economic students. Home economics, is an academic discipline which combines aspects of consumer science, nutrition, cooking, parenting and human development, interior decoration, textiles, family economics, housing, apparel design and resource management as well as other related subjects. Producer: Centron Corporation; Creative Commons license: Public Domain.
Slo-mo Jello 1:00
Over Population Nightmare from 1960s - Star Trek's Mark of Gideon, 2:47
Sing along to Abattabad, :54
PaperPhone, 1:39
PaperPhone is the world's first nextgen, thin film smartphone and interactive paper computer. It is based on a 3.7" flexible electrophoretic (E Ink) display that does not consume electricity when it is not refreshed. Thinfilm sensors allow the phone to respond to bending of the screen to navigate pages in ebooks, play or pause mp3s, make phone calls, or navigate apps. A flexible wacom tablet allows users to draw on the screen with a pen as if it were a sheet of paper.
For more information visit http://www.hml.queensu.ca/paperphone
http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter11/self-check_quizzes.html
Business Cycle Rap (Teach Me How To Dougie Parody), 4:47
Economics Theorist Project by: Or S. & Nadya P
Schumpeter - Business Cycle
"Teach Me 'Bout The Cycle"
Lyrics:
*Anthem of former Austria-Hungary
Aye! Aye!
They ask me, Schumps (what?)
Can you teach me 'bout the cycle?
You know why?
It's what the economy goes by
All I need are his theories and some simple math.
So you, you, and you will learn 'bout this in ropo's class
First stage, off the page, its the business start-up
They gonna be all over it when they hear about that cycle right?
Invest resources like land labor capital
New ideas are important to succeed
establish a position in the market, its what they need
creating a rep(utation) among the investors and consumers
first step has high risks to end up like a loser
marked by lower profit margins
is the price paid by entrepreneurs
[Refrain]
Teach me 'bout the cycle
T-Teach me 'bout the cycle
Never change the cycle
Never Never change the cycle
E'erbody know it, E'erbody know it (T-E-P-R)
You ain't messin' with the cycle (T-E-P-R)
The T is for trough
The E is for expansion
The P is for peak
The R is for recession
E'erbody know it, E'erbody know it (T-E-P-R)
You ain't messin' with the cycle (T-E-P-R)
The name is Schums
For thoses that don't know him
This stage has economic growth and money
A rise in consumer demand isn't funny
They've built a core of loyalty and trust
A group of consumers come back as a must.
Keep up with rising sales and further expansion
They have to increase what's essential.
Manufacturing n' production, these inputs are substantial.
Once upgraded and aided, its part of the plan
Their profit margins continue to rise, 'cause they know they can
Gaining status and approval, they establish their niche
Ads and commercials, can't keep 'em on a leash.
[
As a brand name in the market,
they put money in their pocket.
It's all positives here as they continue to cheer...
Refrain
The third stage, they're at a certain age
When the business matures.
They've fixed every fault and filled every hole
Now they travel through the market on cruise-control
The sales reached a regular amount
Less resources employed on their account
No retirement required, they are not disabled
Stuff profit in the pocket, the margin's still stable.
Venture out, attempt product innovation
It's their call, they're in charge of navigation
Nothing's off limits, the options swirled
Cause they're happy where they are,
On top of the world
Refrain
The final stage is the toughest of all
Favourable conditions are hard to stall
When economic activity is reduced by a lot
The decline in buying and selling cannot be fought
Since employment / also circles the drain
Followed by production and most domaine(s)
None of which / they'll be able to sustain.
They struggle in the market, trying to self discover
Hoping that they will quickly recover
Refrain
Don't focus on the trees, look at the forest
(E'erbody know it, T-E-P-R)
Don't focus on the trees, look at the forest
(You ain't messin' with the cycle)
That's all you need to know 'bout circular flow; Peace.
Coca-Cola Rocket
Dr John- Iko Iko, 5:48
Dr John with Levon Helm, Ringo, Joe Walsh, Rick Danko, Clarence Clemens, Nils Lofgrin
Email (or hand in hard copy) to gmsmith@shanahan.org.
Thursday HW
1. p. 348, #16-18.
Friday HW
1. p. 348, #19.
