By Ken Ripp,
social studies teacher,
Eau Claire Memorial High School in Eau Claire, WI
Purpose:
Expose students to internet technology while introducing them to fiscal and monetary policy. Information gathering skills, economic understanding, policy application, and economic content retention should all be enhanced by this program.Objectives
Students will:
- learn to use basic internet technology.
- be introduced to fiscal and monetary policy.
- use three economic statistics to trace trends.
- apply economic understanding to real situations.
- analyze economic conditions.
- evaluate the effects of their policy prescriptions.
Materials
1. Internet access with Netscape Navigator
2. Internet Educator file - 2003 update: currently under construction. Check back soon.
3. Student copies of instructions, hints, and score sheets.
Procedures
Get the computer lab reserved. (Good Luck!!) Distribute the student handouts and let the students explore from there. Two or three fifty minute periods should suffice. Reading through the student handouts is a good way to get a feel for what the students will be doing. Notice that on page four students are instructed to propose policy solutions for the three time periods they have been investigating. (The internet program will refer them to this page as they work through it.) They are then directed to show you their answers. If you feel they have worked through the situations and not just guessed, then provide them with the this URL: www.execpc.com/~ripp0015/discover2.html The program will provide students with appropriate feedback and explanations based upon their answers. I suggest you not hand out the "Real Mission" sheets (pages 5 and 6) until the students work through the entire program. Actually they won't ask for these pages until then as the directions to do so are at the end of the internet program.
INFLATION AND UNEMPLOYMENT:
WHAT CAN THE PRESIDENT AND CONGRESS, (FISCAL POLICY) AND THE FEDERAL RESERVE SYSTEM, (MONETARY POLICY) DO TO HELP?
Instructions and Helpful Hints for Fiscal and Monetary Policy Via the Internet
TO START THE PROGRAM:
1. Type in the first two letters of your last name, double click on your name, put in your password (last six numbers on library card), double click on internet items, double click on Netscape Navigator.
2. Delete what is in the internet address window and type in the following URL: http://www.execpc.com/~ripp0015/intro.html and then press return or enter. (program should start).
3. Double Click on colored links, Back or Forward on the Menu Bar to move through the program
See the next page for a helpful score sheet. Recording the results of your internet explorations will be helpful. So helpful, it is required!! Have fun as you explore and learn about Monetary and Fiscal Policy via the Internet.
4. Once you've read this page and looked over the score sheets, read the first page on the screen and click on the "search" button. Click on colored links, (these show up as words in blue usually) or on Back or Forward on the Menu Bar to move through the program.
AS YOU WORK YOUR WAY THROUGH THE INTERNET PROGRAM KEEP TRACK OF YOUR PROGRESS BY ANSWERING THE FOLLOWING QUESTIONS FOR THE TIME PERIODS FOUND ON PAGES TWO, THREE, AND FOUR.
1966 - 1969
Gross Domestic Product: Does it appear to be decreasing or increasing? Remember any decline is undesirable as is too steep of an increase. Now check GDP for 1981 - 1983. (See page three please)
Rate of Inflation: Changes in the CPI (consumer price index) measure the rate of inflation. Compare the three years before and three years after the given time period. Does inflation appear to be increasing or decreasing? Now check inflation for 1981 - 1983. (See p. 3)
Unemployment Rate: A rate around 5% is desirable. Any rate over 5% is too high. Any rate below 5% could indicate an economy that is moving too fast. Too high or too low during this time period? Now check unemployment for 1981 - 1983. (Please see Page 3)
Overall Conclusion: Was the economy moving too slow or too fast from 1966 to 1969? Circle your answer.
1981 - 1983
Gross Domestic Product: Does it appear to be decreasing or increasing? Now check GDP for 1990 - 1991. (See Below on this page.)
Rate of Inflation: Compare the three years before and three years after the given time period. Does inflation appear to be increasing or decreasing? Now check inflation for 1990 - 1991. (See Below)
Rate of Unemployment: Too high or too low? Now check unemployment for 1990-1991. (See p. 4)
Overall Conclusion: Was the economy moving too slow or too fast from 1981 to 1983? (Circle your answer)
1990 - 1991
Gross Domestic Product: Does it appear to be decreasing or increasing? Now click Back on the menu bar to check on inflation for each period.
Rate of Inflation: Compare the three years before and three years after the given time period. Does inflation appear to be increasing or decreasing? Now click Back on the menu bar to check on unemployment for each period.
Rate of Unemployment: Is it too high or too low?
Overall Conclusion: Was the economy moving too slow or too fast during 1990 - 1991? Circle your answer for this time period and make sure you have done the same for each of the other time periods. After checking, click on Back and continue the program by reading the info and then clicking on Discover.
Ready or not it is now time for you to prescribe policy for the three time periods you just researched. Remember if the econ car is going too fast you should cut the gas (govt. spending), and apply more brakes (taxes and interest rates). Do just the opposite if the car (the economy) is going too slow. Try it here first. Present your answers to the teacher. (hint: best looking person in the room!!) Now check against the net econ experts with the URL provided by the teacher!!
1966 - 1969
| Government Spending: | Increase | or | Decrease |
| Taxes: | Increase | or | Decrease |
| Interest Rates: | Increase | or | Decrease |
1981 - 1983
| Government Spending: | Increase | or | Decrease |
| Taxes: | Increase | or | Decrease |
| Interest Rates: | Increase | or | Decrease |
1990 - 1991
| Government Spending: | Increase | or | Decrease |
| Taxes: | Increase | or | Decrease |
| Interest Rates: | Increase | or | Decrease |
Here is Your Real Mission
Using your newly acquired research skills and economic understanding, describe the proper fiscal and monetary policy for the 1994 - 1999 time period. You are required to provide evidence for making your decisions. So to start out you'll need to describe the changes in GDP, the CPI, and the unemployment rate. Follow the model you used for the three practice time periods. In the final analysis you will need to prescribe what should be done with fiscal policy, (taxes and government spending) and monetary policy (interest rates). Hint: To find some real up to date and easy to read information try the three sites listed on page six, BUT Please read the rest of this page before you proceed.
1994-1999
Gross Domestic Product: Briefly describe what
has happened to it.
Rate of Inflation: What has the CPI done during this time?
Unemployment Rate: Too low or too high or just right?
Based upon your answers above, what should be done with:
Government Spending: Increase or Decrease or Unchanged
Taxes: Increase or Decrease or Unchanged
Interest Rates: Increase or Decrease or Unchanged
Please include a short defense of each of your fiscal and
monetary policy decisions on the back of this page.
For GDP:
http://www.bea.doc.gov/briefrm/gdp.htm
For inflation:
http://www.globalfindata.com/tbusacpi.htm
or
http://www.whitehouse.gov/fsbr/prices.html
(scroll to consumer price index "box" and click on Chart:
Consumer Price Index)
For Unemployment: http://www.whitehouse.gov/fsbr/employment.html
(scroll to unemployment "box" and click on Chart: Unemployment
Rate) To use these addresses simply delete all of the current
information in the address window except for the http:// Next,
type in one of the above addresses (URL) and press return
or enter. Wait a little and before you know it some great
tables should appear. Good Luck!!