American Economics!
Class began today with a little 'pre-quiz' to test the knowledge and basically re-cap what they have learned from the Great Depression, before and during.
Ways Government influences the Economy-
Fiscal Policy- Saving and taxing to influence economy. Welfare programs have the ability to better the company and not the people. Income taxes can raised or lowered.
Trade Policy- Tariffs. The Government has the ability to refuse to trade with a country. Therefore both countries economy has been influenced.
Monetary Policy- This is when the Government does things to influence the value of money, through the help of the Federal Reserve. When money is in high supply, there is inflation. When there is less money, there is deflation.
Federal Reserve influences money 3 way:
1.Interest rate for banks can be raised or lowered.
2. Setting the rate at which banks can takes out loans.
3. Can tell banks how much money they have to hold on to and how much they can loan out.
After the quick explanation of the terms above, Mr. Long had the students create a time line of during World War 1, problems before the Depression and then the Depression.
Homework:
The 48 Hour Challenge!
Students must design a game that has to explain and analyze what lead to the Great Depression.
It can be either a simulation or visual model.
Must Include:
Governments role in the national economy.
Financial institutions' role in the economy.
The Stock Market's role in the national economy.
Measurements of the economy.
