6. Econ Unit 3 (Macroeconomics)

The focus of this unit is on macroeconomics which is the examination of the economy as a whole, i.e., the combined effects of individual actions, inflation, unemployment, the fiscal policies of government and the monetary policy of the Federal Reserve System.  This unit begins with important economic indicators such as gross domestic product (GDP), gross national product (GNP), consumer price index (CPI), aggregate supply (AS) and aggregate demand (AD) to measure economic growth, inflation, or unemployment.  An understanding of these indicators and how they are derived can contribute to an understanding of how the national economy is performing. Students will examine monetary policy, which refers to the actions of the Federal Reserve System as it makes decisions that lead to changes in the supply of money and the availability of credit.  As the nation’s central bank, the Federal Reserve uses monetary policy to promote price stability, employment and economic growth. Finally, students will explore fiscal policy which refers to the government’s actions regarding taxation and spending. Ways in which the federal government and the Federal Reserve work with macroeconomic stabilization policies to influence the overall levels of employment, output and prices in the economy are addressed.
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