Economics – 5/22/14

I.  Bellwork: Why the Fed Worries Inflation Is too Low

Based upon the article:  Summarize what the Fed is planning to do, the methods they will employ, and the reason the Fed believes this action is necessary.

II. Objective

• Analyze the circumstances behind the various type of inflation that have occurred over  time.
• Provide an accurate summary that makes clear the relationships among the key details and ideas.

III.  iLearn Quiz Sections 13.1 & 13.2 Open Today- closes Monday @ 11:45 pm

IV.  Discussion  13-2 Inflation

• 13-2 Economics- Critical Thinking Activity 19
• Planet Finance (Hyper Inflation) 28:00-38:00

V.  Classwork

A. Economics U$A – Inflation:  Video & Questions

1. What did Kennedy do to stimulate the economy in the early 1960’s?
2. What was happening to demand in 1965-1966?
3. What were the major governmental expenditures in 1965?
4. What type of inflation occurred as a result of the change in demand & government spending?
5. What policy was recommended, but not implemented to decrease inflation?
6. Who gains as a result of inflation?
7. How does inflation affect those people on a fixed income?
8. What did workers in New York fight for and what was the result?
9. What type of inflation was created by the New York workers?
10. How did Nixon first try to combat inflation?  What was the result?
11. What did Nixon later do to combat inflation?  What was the result?
12. What occurs when attempting to lower inflation by decreasing aggregate demand?

Economics W2014