WELCOME TO UNIT 6: THE GREAT DEPRESSION AND THE NEW DEAL

IN YOUR NOTEBOOK: WRITE DOWN YOUR BEST INFERENCES ABOUT WHAT THE DEPRESSION WAS, BASED ON YOUR PRIOR KNOWLEDGE AND THESE IMAGES.

THE GREAT DEPRESSION

Date: 1929-1939

Definition: a period of economic depression in the United States and the rest of the world

Less production

Massive unemployment

Poverty and starvation

Significance

Huge cost to human well-being

Transformed the role of the US federal government

WHAT THIS UNIT LOOKS LIKE

3.5 weeks – now through 3/20 Topics

Causes of the Depression Responses to the Depression – the New Deal

Assessments Causes quiz, Mon 3/9 or Tu 3/10 New Deal poster + presentation (small groups) IA3, 3/19 and 3/20 (in class)

AND NOW FOR ECONOMICS 101

KEY TERMS TO KNOW AND LOVE

Supply: the amount of a good or service that sellers are willing to sell

Demand: the amount of a good or service that buyers are willing to buy

Price: the amount that a buyer pays a seller for a particular good or service

SIMULATION 1: SUPPLY AND PRICE

Buyers: your job is to buy pencils at auctionWe’re going to vary the amount of pencils in the

economyRound 1: one pencilRound 2: three pencilsRound 3: twenty pencils

What happened to the price as the supply increased?

SIMULATION 2: DEMAND AND PRICE

Buyers: your job is to buy pencils at auctionWe’re going to vary the number of people who are interested

in buying pencilsRound 1: anyone caught with a golf pencil earns an automatic

Saturday detentionRound 2: you have to take a lot of notes this week; they can be

in pencil or penRound 3: you are now required to have a golf pencil every day in

history class

What happened to the price as the demand increased?

IN YOUR NOTEBOOK: WHO DETERMINED PRICES IN THESE SIMULATIONS?

THREE REALLY BASIC RULES OF ECONOMICS

Demand is directly proportional to price – the more people want something, the more it will cost.

Supply is inversely proportional to price – the more of something is available, the less it will cost.

Individuals’ decisions, taken together, affect the economy – supply, demand, and prices are all the result of different individual consumers and producers, coordinated through the market.