The President's Dilemma: Implementing Fiscal and Monetary Policy to Resolve an Economic Crisis
(Project Based Learning)
In a mixed-market economy, like the United States, there are certain economic functions of government and one of the most important is stabilizing the economy (promote the general welfare). The federal government uses fiscal and monetary policy tools to influence the behavior of individuals, firms, and financial institutions. However, in attempting to improve the performance of the nation’s economy, the government encounters the problem of resource scarcity. Tradeoffs must be considered; some groups may be harmed in order to help another group in society. To explore these concepts and gain some understanding of macroeconomic analysis, students are presented with a certain problem solving scenario which provides valuable insight into economic government policies.
Task 1: Make More Money?
Instructional activity to demonstrate the instructional methodology of project based learning.
1. Read "Note from AJ"
2. Create an initial driving question addressing the problem. (Use AJ's Trade-offs Project Log)
3. Create a list of "What Do We Know?"
4. Create a list of "What Do We Need to Know?"
5. Discuss what resources could provide answers to our "need to know" questions.
6. In pairs create questions for AJ
7. Live meeting with AJ
8. Revisit the Know/Need to Know List and revise Driving Question
9. Propose solutions
10. Debrief: economic content and PBL
Instructional activity to demonstrate the instructional methodology of project based learning.
1. Read "Note from AJ"
2. Create an initial driving question addressing the problem. (Use AJ's Trade-offs Project Log)
3. Create a list of "What Do We Know?"
4. Create a list of "What Do We Need to Know?"
5. Discuss what resources could provide answers to our "need to know" questions.
6. In pairs create questions for AJ
7. Live meeting with AJ
8. Revisit the Know/Need to Know List and revise Driving Question
9. Propose solutions
10. Debrief: economic content and PBL
Task 2: Launching the Project
1. Read "Memo From the President"
1. Read "Memo From the President"
Task 3: Framing the Inquiry
a. Develop initial "Know" list
b. Develop "Driving Question." How can we, as . . . [the role being assumed by the students], do . . . [the specific tasks students must complete], so that . . . [the specific result or goals to be accomplished]
c. Develop initial "Need to Know" list.
a. Develop initial "Know" list
b. Develop "Driving Question." How can we, as . . . [the role being assumed by the students], do . . . [the specific tasks students must complete], so that . . . [the specific result or goals to be accomplished]
c. Develop initial "Need to Know" list.
Task 4: Problem Solving and Learning Activities (indicators)
1. Economic Indicators PowerPoint
2. Economic Indicators Research (Group 1 Unemployment Research, Group 2 CPI/Inflation, Group 3 GDP)
3. Economic Indicators Quiz
1. Economic Indicators PowerPoint
2. Economic Indicators Research (Group 1 Unemployment Research, Group 2 CPI/Inflation, Group 3 GDP)
3. Economic Indicators Quiz
Task 5: Problem Solving and Learning Activities (statistics)
1. Watch "Recession"
2. Notes from white board on recessions and business cycles
3. Review "National Statistics Table"
4. In groups, write a memo comparing current economic data with the past. Use the information in the table to place the current economic crisis within an historical context.
1. Watch "Recession"
2. Notes from white board on recessions and business cycles
3. Review "National Statistics Table"
4. In groups, write a memo comparing current economic data with the past. Use the information in the table to place the current economic crisis within an historical context.
Task 6: Problem Solving and Learning Activities (Constituent Letter & Fiscal Policy)
1. Read the letter from "Campaign for Job Security" (Joe Brezinski)?
2. In groups, discuss the letters concerns and the group's requests.
3. Fiscal Policy PowerPoint
4. Demand Side v Supply Side Policies: Read 15.2 and complete outline
5. Review Demand Side vs Supply Side Fiscal Policy
6. Answer the following question in your project log: Identify how fiscal policy be used to help workers like Joe Brezinski? (must demonstrate understanding of fiscal policy)
1. Read the letter from "Campaign for Job Security" (Joe Brezinski)?
2. In groups, discuss the letters concerns and the group's requests.
3. Fiscal Policy PowerPoint
4. Demand Side v Supply Side Policies: Read 15.2 and complete outline
5. Review Demand Side vs Supply Side Fiscal Policy
6. Answer the following question in your project log: Identify how fiscal policy be used to help workers like Joe Brezinski? (must demonstrate understanding of fiscal policy)
Task 7: Problem Solving and Learning Activities (Constituent Letter & Monetary Policy)
1. Read the letter from "Silver Panthers of America"
2/3. Discuss: What aspect of the economic crisis is the writer focused on and why? What doe the writer want the president to do?
4. Monetary Policy PowerPoint
5. Review Graphic Organizer
6. Watch That Film About Money Part 1 and That Film About Money Part 2
7. Answer the following question in your project log: Identify how monetary policy be used to help people represented in Silver Panthers of America. (1. identify problem from the letter 2. identify which type of monetary policy can solve problem; either contractionary or expansionary 3. list and explain how each tool of monetary policy can be used: open-market operations, discount rate, reserve ratio amount)
1. Read the letter from "Silver Panthers of America"
2/3. Discuss: What aspect of the economic crisis is the writer focused on and why? What doe the writer want the president to do?
4. Monetary Policy PowerPoint
5. Review Graphic Organizer
6. Watch That Film About Money Part 1 and That Film About Money Part 2
7. Answer the following question in your project log: Identify how monetary policy be used to help people represented in Silver Panthers of America. (1. identify problem from the letter 2. identify which type of monetary policy can solve problem; either contractionary or expansionary 3. list and explain how each tool of monetary policy can be used: open-market operations, discount rate, reserve ratio amount)
Task 8: Problem Solving and Learning Activities (Supply-Side)
1. Read the letter from "Henry J. Car Corporation"
2. Discuss: What aspect of the economic crisis is the CEO focused on and why? What does the CEO want the President to do? What does every business want? What happens to wages when there is high unemployment?
3. Answer the following question in your project log: How might corporate leaders, unemployed workers, and retired people respond differently to the government's use of demand-side fiscal policies? How might each group respond differently to supply-side fiscal policies?
1. Read the letter from "Henry J. Car Corporation"
2. Discuss: What aspect of the economic crisis is the CEO focused on and why? What does the CEO want the President to do? What does every business want? What happens to wages when there is high unemployment?
3. Answer the following question in your project log: How might corporate leaders, unemployed workers, and retired people respond differently to the government's use of demand-side fiscal policies? How might each group respond differently to supply-side fiscal policies?
REVISE: Know List, Driving Question. Need to Know List
Task 9: Preparing for the Presentation
1. Read memo from the President's Chief of Staff
2. Review Rubric
3.Students work on on policy recommendations, draft a written summary to the president, and plan presentations.
-Policies must be grounded in the project scenario: cost-push inflation with rapidly rising oil prices, high unemployment and slowing economic growth; policies must not increase the national debt. Therefore, find solutions on how to increase government spending or reduce taxes, or subsidize research without incurring more debt. REMEMBER to address current economic crisis considering everyone's concerns.
-Visual may be produced on chart/poster paper, overhead transparencies, or as PowerPoint slides. Students may choose to create any kind of graphs, charts, lists, or other displays that will add to presentation.
1. Read memo from the President's Chief of Staff
2. Review Rubric
3.Students work on on policy recommendations, draft a written summary to the president, and plan presentations.
-Policies must be grounded in the project scenario: cost-push inflation with rapidly rising oil prices, high unemployment and slowing economic growth; policies must not increase the national debt. Therefore, find solutions on how to increase government spending or reduce taxes, or subsidize research without incurring more debt. REMEMBER to address current economic crisis considering everyone's concerns.
-Visual may be produced on chart/poster paper, overhead transparencies, or as PowerPoint slides. Students may choose to create any kind of graphs, charts, lists, or other displays that will add to presentation.
Task 10: Resources
1. Summary of Fiscal and Monetary Policy
2. Summary of Letters: Overview of Competing Interest
3. Concept Definitions
1. Summary of Fiscal and Monetary Policy
2. Summary of Letters: Overview of Competing Interest
3. Concept Definitions