Economics – 12/14/11

I.  Bellwork: Q&A

• Page 363 Economic Analysis
• Page 366 Economic Analysis

II. Objective:

• Identify how inflation is measured, the causes of inflation, and its impact on the economy.

III.  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?

IV.  Quiz Tomorrow – 13-1 & 13-2

What to know?

• Business Cycle
• Different types of Economic Indicators and what they predict
• Recession/Depression
• What events led to the Great Depression and what followed?
• Different Types of Inflation (Hyper, Creeping, Stagflation)
• Different Causes of inflation (Wage Price, Demand Pull, Cost Push, Monetary Policy)
• Inflation Winners & Losers
• How inflation impacts the economy?

Economics F2011