fed plus changes to gdp
TRANSCRIPT
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One per groupOn your white boards
1. What economic activity does GDP leave out?(multiple answers)
2. What part of the US government printed your money? (look on a $1, $2, $5, $10, $20 bill)
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
US consumers spend 5% more in 2013, than 2012 for the Winter Holidays.
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
US government passes $800 billion healthcare reform bill
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
Mexican citizens demand 15 % fewer US made cars
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
US Students learn about the benefits of saving money
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
Bank business lending increases by 7% in 2013
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
Raul buys a used car from Jim Click
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
The internet is created
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
Americans demand 50% more Mexican baked goods
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
US military invades Iran
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
NBA plays a game in China, afterwards Chinese people demand more US made basketballs
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
US demand for illegal drugs increase by 10%
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
World Demand for American timber increases
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens if…
Jesse downloads a “free” app for his iphone
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GDP = C + I + G + (Ex – Im)Assuming everything else stays equal, what happens
if…
US Government cuts income tax rates by 2 %
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Federal Reserve birthday card
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Federal Reserve birthday card• Write a detailed birthday card to the Federal Reserve
System. Must include:• The nickname of the system• District structure and where we live• Which birthday is this• How does the Federal Reserve conduct monetary
policy? (IOW: how does it change the MS?)• What would you like the Federal Reserve to do with
interest rates next year and why? Think about the parts of GDP & unemployment
• Worth 30 points, late after 12/6• - 5 for each part missing, -5 for sloppy/no color, -5 for 2+ misspellings • -5 for anything unsupported. I think the Federal Reserve should…. b/c….
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Verbal BellringerWhy don’t some people trust banks?
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What if the bank goes out of business?
• $250,000 per US account
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District Structure
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Federal Reserve System
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Education Advisory CouncilSF trip Dec 2012
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Who controls “the Fed”?
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What does “the Fed” do?
SuppliesMoney
Controls Moneysupply
SetsReserve
Requirements SuperviseBanks
Gov’t Accounting
ClearsChecks
THE FED
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Why is the Chairman of the Federal Reserve sometimes thought of as the
“second most powerful person in the US”?
• Cause: increases interest rates
• Effect: ????
• Cause: lowers interest rate
• Effect: ??? 2014Janet Yellen
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Federal Reserve birthday card• Write a detailed birthday card to the Federal Reserve
System. Must include:• The nickname of the system• Describe its district structure and where we live• Which birthday is this• Explain how the Federal Reserve conducts monetary
policy? (IOW: how does it change the MS?) (3 ways)• What would you like the Federal Reserve to do with
interest rates next year and why? Think about the parts of GDP & unemployment
• Worth 30 points, late after 12/6• - 5 for each part missing, -5 for sloppy/no color, -5 for 2+ misspellings • -5 for anything unsupported. I think the Federal Reserve should…. b/c….