Monday, March 30 - Tuesday, March 31, 2009

Fiscal Policy

OBJECTIVES 

Students shall be able to

  1. Identify the Employment Act of 1946 and the roles of the CEA and JEC.

  2. Distinguish between discretionary and nondiscretionary fiscal policy.

  3. Differentiate between expansionary and contractionary fiscal policy.

  4. Recognize the conditions for recommending an expansionary or contractionary fiscal policy.

  5. Explain expansionary fiscal policy and its effects on the economy and Federal budget.

  6. Explain contractionary fiscal policy and its effects on the economy and Federal budget.

  7. Describe the two ways to finance a government budget deficit and how each affects the economy.

  8. Describe the two ways to handle a government budget surplus and how each affects the economy.

  9. Give two examples of how built in stabilizers help eliminate recession or inflation.

  10. Explain the differential impacts of progressive, proportional, and regressive taxes in terms of stabilization policy.

  11. Explain the significance of the “full-employment budget” concept.

  12. List three timing problems encountered with fiscal policy.

  13. State political problems that limit effective fiscal policy.

  14. Explain and recognize graphically how crowding out and inflation can reduce the effectiveness of fiscal policy.

  15. Give two examples of complications that may arise when fiscal policy interacts with international trade.

  16. Give an example of supply side fiscal policy and three possible positive effects from it.
     

ACTIVITIES

  1. Three activities from the NCEE AP Economics curriculum.

  2. Stock Market Project

Assignments:

  1. Complete "The Tools of Fiscal Policy."

  2. Complete "Discretionary and Automatic Fiscal Policy."

  3. Complete "Two Ways to Analyze Fiscal Policy" (skip the 1st way - page one on the AE model)

  4. Complete "Analyzing the Macroeconomy."

  5. Complete your stock spreadsheet.
    [Remember that you have to save your spreadsheet at school to \\kofs\ss_students\nelson\1st_period\stocks_spreadsheets.]

ASSESSMENT PROCEDURES

Monitor and adjust to check understanding.