Economics

Homework due Monday, January 4, 2016

Overview:  You must complete parts I and II of this assignment.  Terms will be checked, and the written parts of the assignments will be collected and graded as noted.   Part III is extra credit.

I.    Fiscal and Monetary Policies

      Economics in Our Times

      Read pp 354-360, 364.  Be sure to read “Economics and People”, pp 357-358.

      Write answer to Question 1 on p. 358

      Write answers to Learning Checks:

                  p. 359, # 1-4

                  p. 364, #1-4

      Write definitions for the following terms in your own words (DO NOT copy the    textbook’s definition):

                  fiscal policy

                  expansionary fiscal policy

                  contractionary fiscal policy

                  crowding out

                  crowding in

                  expansionary monetary policy

                  contractionary monetary policy

      Read:   “The Chicago School”

                     “Keynsian Economic Theory”

Complete the Study Questions.  Download the document. You may handwrite or type your answers. (Will be collected and graded.)

II.  Monetary Policy in Action

      Go to http://www.frbsf.org/education/

      Scroll down to the heading “PLAY”, and find “Chair the Fed: A Monetary Policy Game.”  Click on GO, then on Launch Game, then on Click to play Chair the Fed. On the page titled “So you want to be in charge of Monetary Policy”, click on Your Job. Read that page and understand it, then click on Play Now.

      You can play the game as many times as you like. 

      Write a paragraph summarizing your experiences with the game.  Be sure to address the following questions:

1.   Were you reappointed to a new term as chairman?

2.  What were the economic conditions in the final year of your term: unemployment rate  

         and inflation rate?

3.  What were your greatest challenges in playing the game?  Did you find unemployment or inflation more difficult to keep under control?

..

This paragraph will be collected and graded.

III. Extra Credit

      Return to the screen that has the “Launch Game” button

      Scroll down to the heading BEHIND THE SCENES.  Click on the arrow.

      Watch at least two of the VIDEO Q&A’s.

      Write your answer to each question you chose (summarize what the video said.)

      You may do up to FIVE videos (minimum is TWO).

      Each video and your answers to the questions is worth 2 points.