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Use economic thinking to explain choice in a world of scarcity
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Explain what economics is and explain why it is important
Define and give examples of marginal analysis
Distinguish between microeconomics and macroeconomics
Distinguish between positive and normative economics
Explain the cost of choices and trade-offs
Illustrate society's trade-offs by using a production possibilities frontier (or curve)
Explain the assumption of rationality by individuals and firms
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Use Supply and Demand Analysis to predict changes in the economy
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define markets and their role in the allocation of scarce resources
Describe the concepts of supply and demand
Draw supply and demand curves
Explain changes in demand, supply, quantity demanded, and quantity supplied
Analyze the effects of changes in supply and demand on equilibrium price and quantity
Identify the circumstances under which markets efficiently allocate resources and the circumstances under which markets fail
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Use GDP to evaluate economic performance and business cycles
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Identify major macroeconomics goals, such as economic growth, full employment, and price stability
Explain how macroeconomic indicators are used to assess the state of the economy
Differentiate between nominal and real GDP
Explain business cycles, including recessions, depressions, peaks, and troughs
Calculate real GDP per capita using population data
Explain the strengths and limitations of using GDP as a measure of economic welfare
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Evaluate macroeconomic outcomes, including unemployment and inflation, and their impact on different demographic groups within the economy
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define unemployment and the labor force participation rate
Calculate the unemployment rate and the labor force participation rate
Discuss the causes of unemployment and trends in unemployment and the labor force participation rate
Identify the types of unemployment including cyclical, frictional, structural, and natural unemployment
Explain how inflation is calculated and the different ways to measure inflation
Apply inflation metrics to convert nominal to real values
Identify the causes and consequences of inflation
Explain the strengths and limitations of key macroeconomics measures, including inflation and unemployment
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Describe the linkages between economic growth and “standards of living”
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define economic growth and how it is measured
Identify the sources of economic growth
Explain how increasing productivity can lead to sustained economic growth
Explain differences in economic growth around the world
Identify methods and policies to foster sustainable growth
Identify positive and negative externalities associated with economic growth
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Use the aggregate demand-aggregate supply model to analyze the macroeconomy
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define aggregate demand and supply
Explain the equilibrium levels of real GDP and price level using the AD-AS model
Examine factors that shift aggregate supply and aggregate demand
Illustrate economic growth, unemployment, and inflation using the AD-AS model
Identify conditions leading to inflationary and recessionary gaps
Describe the contributions of economic theorists to our understanding of the aggregate demand/aggregate supply model
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Explain the uses and implications of fiscal policy
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define fiscal policy
Identify the goals of fiscal policy
Identify the major spending categories and major revenue sources in the U.S. Federal budget
Distinguish between the deficit and the national debt
Explain how expansionary and contractionary fiscal policy can be used to close recessionary and inflationary gaps
Describe the role of automatic stabilizers and supply side fiscal policies in the economy
Apply the multiplier principle to government spending and taxation
Describe the contributions of economic theorists to our understanding of fiscal policy
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Explain the role of money and banking in an economy
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Recognize the historical and current forms and characteristics of money
Explain the functions of money and liquidity
Identify the M1 and M2 money supply as defined by the Federal Reserve
Describe the role financial markets and financial intermediaries play in an economy
Explain how interest rates are determined in the loanable funds market
Describe how banks create money through the fractional reserve banking system
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Examine the tools and impacts of monetary policy
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define monetary policy
Explain the structure, functions, and responsibilities of the Federal Reserve System
Explain the Fed’s dual mandate of price stability and full employment
Describe the Fed's main policy tools and how they are used to close recessionary and inflationary gaps
Evaluate the opportunities and limitations of monetary policies
Explain how monetary policies affect GDP, inflation, unemployment and interest rates
Describe the contributions of economic theorists to our understanding of monetary policy
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Analyze the benefits and costs of international trade
Assessment Strategies
Oral, written, and/or graphic formative and summative assessments
Criteria
Define comparative advantage
Explain how comparative advantage provides a justification for specialization and trade
Predict the outcomes of international trade using the supply and demand model
Identify different types of trade barriers
Analyze the impact of trade barriers on economic outcomes
Articulate rationales for and against trade barriers
Identify international economic institutions