Why Would I Care How the Economy Is Doing? Va CTE Resources

Post date: Oct 10, 2011 2:32:5 AM

Related Standards of Learning

Va CTE Resources

• • English: 10.4, 11.4, 12.4

Why Would I Care How the Economy Is Doing?

Duty/Concept Area

Developing Economic Skills and Knowledge

Scenario

Sam, your older brother, will graduate from college this spring with a major in Spanish and hopes to find a good job right away. But he is confused by the all the comments from members of your family.

Aunt Sally: Thank goodness you didn’t graduate in 2009. The economy was in a deep recession.

Uncle Raymond: Be sure you look for a job where your wages will keep up with inflation.

Grandad: You might have a hard time finding a job because economic growth is low and unemployment rates are high. Remember that you will be competing with unemployed people who already have experience.”

Grandmom: “I hope you get a job close to home.”

You: “Thank goodness I’ve studied economics, big brother, so I can explain all that stuff to you!”

Big Question

How does the condition of the economy affect a person just entering the job market?

Focused Questions

• 1. What are a nation’s main three economic goals? What economic indicators are generally used to measure success in those goals?

  2. What are rates you might expect for these economic indicators in a healthy economy? What were these rates 20 years ago? What were these rates 10 years ago? What are these rates in the current economy?

  3. How might Sam’s prospects for finding a job be affected by the unemployment rate? By the GDP? By the CPI?

  4. How is the business cycle a “picture” of the economy over a period of time?

  5. What are the four stages of the business cycle? What do you expect to be happening with prices, unemployment, and economic growth in each stage?

  6. Which stage(s) would be best for seeking a job? Why? Which stage is the worst for jobseekers? Why?

  7. In which stage of the business cycle is the current economy? How might this affect Sam’s job prospects?

  8. What are some of the causes of inflation? Explain your answer.

  9. Who is helped and who is hurt by inflation, and why? If Sam were to graduate during a time of inflation, how would his job prospects be affected?

  10. What are some causes of recession? Explain your answer.

  11. Who is helped and who is hurt by recession, and why? If Sam were to graduate during a recession, how would his job prospects be affected?

  12. How can monetary and fiscal policy be used to stimulate the economy or slow it down? How would those actions affect economic growth, inflation, and unemployment?

  13. How could government intervention in the economy affect Sam’s job prospects in the short-term? In the long-term?

  14. Why should Sam look at the “big picture” of the economy when making a career decision?

  15. Based on the current economy, what are some suggestions you could offer Sam that might improve his chances of making a wise career decision after graduation?