Thursday, February 17, 2011
Introduction to Economic Growth & Instability
Students shall be able to
1. Define two measures of economic growth.
2. Explain why growth is a desirable goal.
3. Identify two main sources of growth.
4. Explain the “rule of 70.”
5. Give average long-term growth rates for U.S. and qualifications of raw data.
6. Summarize Global Perspective 8-1.
7. Explain what is meant by a business cycle.
8. Describe the four phases of an idealized business cycle.
9. Identify two types of non-cyclical fluctuations in business activity.
10. Describe how innovation and/or random events might cause business cycles.
11. Explain why business cycles affect capital and consumer durable goods industries more than non-durable goods industries.
12. State causes of frictional, cyclical, and structural unemployment.
13. Identify the full employment or natural rate of unemployment.
14. Describe how unemployment is measured by the Bureau of Labor Statistics (BLS).
15. Evaluate strengths and limitations of BLS unemployment statistics.
16. Identify the economic costs of unemployment and the groups that bear unusually heavy unemployment burdens.
17. Define inflation and list two types of inflation.
18. Describe the predicted outcome of increased total demand on employment and inflation in ranges 1, 2, and 3 when presented with the diagram.
19. List three groups who are hurt and two groups who may benefit from unanticipated inflation.
20. Present three possible effects of inflation on output and employment.
21. Compare U.S. inflation and unemployment rates to one or more industrialized nations.
Activities 16 & 17 from the NCEE AP Macroeconomics curriculum.
Complete NCEE activity 16 - "Types of Unemployment."
Complete NCEE activity 17 - "The Business Cycle."
Monitor and adjust to check understanding.