Essential Questions 

1. Explain how a government budget surplus or deficit influences the real interest rate, investment, and saving.

2. Analyze the expenditure multiplier

3. Explain how real GDP adjusts to achieve equilibrium expenditure

Content 

The value and use of GDP can be strictly measured through aggregate demand and aggregate supply. Aggregate demand is that which combines GDP with consumption, investments, government investments, and net exports. Aggregate demand can give a more accurate measurement of an economy’s strength through it’s production. It’s aggregate supply on the other hand can be a determinate of the how efficiently production can meet demand, and how much of a factor inflation and changing costs affect whether the country can meet Macroeconomic equilibrium.

Unit Outline:

1. Aggregate Demand

2. Aggregate Supply

3. Macroeconomic Equilibrium

Skills 

Bloom's Taxonomy

Webb's Depth of Knowledge

aggregate supply, aggregate demand, fiscal policy, monetary policy, macroeconomic/full employment equilibrium, recessionary/inflationary gap, real business cycle, demand-pull inflation, cost-push inflation, stagflation, aggregate planned expenditure, consumption function, marginal propensity to consume/import, equilibrium expenditure, marginal tax rate

Assessments 

Resources 

Lesson Plans

Chapters:

• 24

• 30

WY: Social Studies (2014)

WY: Grades 9-12

Production, Distribution, and Consumption

Students will:

SS12.3.1 Analyze the impact of supply, demand, scarcity, prices, incentives, competition, and profits on what is produced, distributed, and consumed.

SS12.3.2 Analyze and evaluate how people organize for the production, distribution, and consumption of goods and services in various economic systems (e.g., capitalism, communism, and socialism).

SS12.3.3 Analyze and evaluate the impact of current and emerging technologies at the micro and macroeconomic levels (e.g., jobs, education, trade, and infrastructure) and their impact on global economic interdependence.

SS12.3.4 Explain how financial and government institutions make economic decisions (e.g., banking, investment, credit, regulation, and debt).

SS12.3.5 Evaluate how values and beliefs influence microeconomic and macroeconomic decisions.

Time, Continuity, and Change

Students will:

SS12.4.1 Describe patterns of change (cause and effect) and evaluate how past events impacted future events and the modern world.

SS12.4.3 Given a significant current event, critique the actions of the people or groups involved; hypothesize how this event would have played out in another country.

SS12.4.4 Describe the historical interactions between and among individuals, groups, and/or institutions (e.g., family, neighborhood, political, economic, religious, social, cultural, and workplace) and their impact on significant historical events.

People, Places, and Environments

Students will:

Human Place and Movement

SS12.5.3 Analyze, interpret, and evaluate how conflict, demographics, movement, trade, transportation, communication, and technology affect humans’ sense of place.

Technology, Literacy, and Global Connections

Students will:

SS12.6.1 Analyze, evaluate, and/or synthesize multiple sources of information in diverse formats and media in order to address a question or solve a problem.

SS12.6.2 Assess the extent to which the reasoning and evidence in a text supports the author's claims.

SS12.6.3 Use digital tools to research, design, and present social studies concepts (e.g., understand how individual responsibility applies in usage of digital media).

SS12.6.4 Evaluate and integrate accurate, sufficient, and relevant information from primary and secondary sources to support writing

CCSS: Literacy in History/Social Studies, Science, & Technical Subjects 6-12

CCSS: Grades 11-12

Capacities of the Literate Individual

Students Who are College and Career Ready in Reading, Writing, Speaking, Listening, & Language

They demonstrate independence.

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They build strong content knowledge.

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They respond to the varying demands of audience, task, purpose, and discipline.

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They comprehend as well as critique.

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They value evidence.

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They use technology and digital media strategically and capably.

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They come to understand other perspectives and cultures.

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Reading: History/Social Studies

Key Ideas and Details 

1. Read closely to determine what the text says explicitly and to make logical inferences from it; cite specific textual evidence when writing or speaking to support conclusions drawn from the text.

RH.11-12.1. Cite specific textual evidence to support analysis of primary and secondary sources, connecting insights gained from specific details to an understanding of the text as a whole.

2. Determine central ideas or themes of a text and analyze their development; summarize the key supporting details and ideas.

RH.11-12.2. Determine the central ideas or information of a primary or secondary source; provide an accurate summary that makes clear the relationships among the key details and ideas.

3. Analyze how and why individuals, events, or ideas develop and interact over the course of a text.

RH.11-12.3. Evaluate various explanations for actions or events and determine which explanation best accords with textual evidence, acknowledging where the text leaves matters uncertain.

Craft and Structure

4. Interpret words and phrases as they are used in a text, including determining technical, connotative, and figurative meanings, and analyze how specific word choices shape meaning or tone.

RH.11-12.4. Determine the meaning of words and phrases as they are used in a text, including analyzing how an author uses and refines the meaning of a key term over the course of a text (e.g., how Madison defines faction in Federalist No. 10).

5. Analyze the structure of texts, including how specific sentences, paragraphs, and larger portions of the text (e.g., a section, chapter, scene, or stanza) relate to each other and the whole.

RH.11-12.5. Analyze in detail how a complex primary source is structured, including how key sentences, paragraphs, and larger portions of the text contribute to the whole.

6. Assess how point of view or purpose shapes the content and style of a text.

RH.11-12.6. Evaluate authors’ differing points of view on the same historical event or issue by assessing the authors’ claims, reasoning, and evidence.

Integration of Knowledge and Ideas

7. Integrate and evaluate content presented in diverse formats and media, including visually and quantitatively, as well as in words.

RH.11-12.7. Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., visually, quantitatively, as well as in words) in order to address a question or solve a problem.

8. Delineate and evaluate the argument and specific claims in a text, including the validity of the reasoning as well as the relevance and sufficiency of the evidence.

RH.11-12.8. Evaluate an author’s premises, claims, and evidence by corroborating or challenging them with other information.

9. Analyze how two or more texts address similar themes or topics in order to build knowledge or to compare the approaches the authors take.

RH.11-12.9. Integrate information from diverse sources, both primary and secondary, into a coherent understanding of an idea or event, noting discrepancies among sources.

Range of Reading and Level of Text Complexity 

10. Read and comprehend complex literary and informational texts independently and proficiently.

RH.11-12.10. By the end of grade 12, read and comprehend history/social studies texts in the grades 11–12 text complexity band independently and proficiently.

NCSS: Social Studies 2010

NCSS: High

PRODUCTION, DISTRIBUTION, AND CONSUMPTION

Knowledge 

Learners will understand

That regulations and laws (for example, on property rights and contract enforcement) affect incentives for people to produce and exchange goods and services;

The roles of institutions that are designed to support and regulate the economy (e.g., the Federal Reserve, and the World Bank);

How factors such as changes in the market, levels of competition, and the rate of employment, cause changes in prices of goods and services;

How interest rates rise and fall in order to maintain a balance between loans and amounts saved; How markets fail, and the government response to these failures;

Various measures of national economic health (e.g., GNP, GOP, and the unemployment rate).

Processes

Learners will be able to

Explain how monetary decisions at the national level (such as the Federal Reserve Bank in the United States) affect households, businesses, and governments;

Apply the concepts of marginal cost and marginal benefit to the analysis of social problems;

Analyze how the trade off between risk and return is played out in the marketplace;

Compare various ways in which countries improve the output of goods and services and increase the level of income eamed from producing goods and services;

Products

Learners demonstrate understanding by

Interpreting media reports about current economic conditions, and explaining in visual formats how these conditions can influence decisions by consumers, producers, and government policymakers;

Using available technology to research various perspectives on global issues such as health care, global warming, and immigration, and developing a media presentation to share findings.