ALEX | Alabama Learning Exchange

Monetary and Fiscal Policy: Crash Course Government #48

Classroom Resource Information

Title:

Monetary and Fiscal Policy: Crash Course Government #48

URL:

https://www.pbs.org/video/crash-course-government-and-politics-48/

Content Source:

PBS

Type:

Audio/Video

Overview:

In this video, Craig is going to dive into the controversy of monetary and fiscal policy. Monetary and fiscal policy are ways the government, and most notably the Federal Reserve influences the economy--for better or for worse.

Content Standard(s):

Social Studies
SS2010 (2010)
Grade: 12
Economics

10 ) Explain the structure, role, and functions of the United States Federal Reserve System.

• Describing how the United States Federal Reserve System oversees the banking system and regulates the quantity of money in the economy

• Defining monetary policy

• Describing how the central bank uses its tools of monetary policy to promote price stability, full employment, and economic growth

Unpacked Content

Strand: Economics, Civics and Government

Course Title: Economics

Evidence Of Student Attainment:

Students:

Determine the specific economic impact of changes in the reserve ratio.
Determine the specific economic impact of changes in the discount rate.
Determine the specific economic impact of open market operations to influence the federal funds rate.
Determine the appropriate monetary policy to promote employment.
Determine the appropriate monetary policy to combat inflation.

Teacher Vocabulary:

monetary policy
reserve ratio (reserve requirement)
fractional reserve banking
discount rate
deposit multiplier (deposit expansion
multiplier /simple money multiplier)
open-market operations
federal funds rate
easy-money policy (expansionary)
tight-money policy (contractionary)

Knowledge:

Students know:

The functions of money: medium of exchange, unit of account (measure of value), and store of value.
The role of the Federal Reserve in the United States' economy.
The 3 primary monetary policy tools: reserve ratio, discount rate, and open market operations to influence the federal funds rate.
How the 3 primary monetary policy tools impact the money supply and the overall economy.

Skills:

Students are able to:

Determine the specific economic impact of changes in the reserve ratio.
Determine the specific economic impact of changes in the discount rate.
Determine the specific economic impact of open market operations on the federal funds rate.
Determine the appropriate monetary policy to promote employment.
Determine the appropriate monetary policy to combat inflation.

Understanding:

Students understand that:

Money functions to increase trade.
Monetary policy tools are used to promote employment and economic growth.
Monetary policy tools are used to combat inflation.
The Federal Reserve has a role in controlling the money supply.

Alabama Alternate Achievement Standards

AAS Standard:
SS.E.AAS.12.10- Define the United States Federal Reserve System and describe its purpose.
SS.E.AAS.12.10a - Define monetary policy.

Social Studies
SS2010 (2010)
Grade: 12
Economics

11 ) Explain how the government uses fiscal policy to promote the economic goals of price stability, full employment, and economic growth.

• Defining fiscal policy and the use of taxation and government purchases

• Comparing government deficits and the national debt

Unpacked Content

Strand: Economics, Civics and Government

Course Title: Economics

Evidence Of Student Attainment:

Students:

Determine the specific economic impact of changes in the government spending.
Determine the specific economic impact of changes in the tax rate.
Determine the appropriate fiscal policy to promote employment.
Determine the appropriate fiscal policy to combat inflation.

Teacher Vocabulary:

fiscal policy
Keynesian
deficit
crowding out effect
surplus
debt
expansionary policy
contractionary policy
multiplier effect
automatic stabilizers

Knowledge:

Students know:

The role of Congress and the President in promoting economic stability through the use of discretionary fiscal policy.
Government spending and taxes act automatically to help stabilize the economy.
The two fiscal policy tools: government spending and taxes.

Skills:

Students are able to:

Determine the specific economic impact of changes in government spending.
Determine the specific economic impact of changes in the tax rate.
Determine the appropriate fiscal policy to promote employment.
Determine the appropriate fiscal policy to combat inflation.

Understanding:

Students understand that:

Taxes and government spending impact the overall economy, both through discretionary fiscal policy and automatic stabilizers.
Fiscal policy tools are used to promote employment and economic growth.
Fiscal policy tools are used to combat inflation.

Alabama Alternate Achievement Standards

AAS Standard:
SS.E.AAS.12.11- Understand the concepts of price stability, full employment, and economic growth.

Tags:

economy, Federal Reserve, monetary and fiscal policy

License Type:

Custom Permission Type
See Terms: https://aptv.pbslearningmedia.org/help/terms-of-use/
For full descriptions of license types and a guide to usage, visit :
https://creativecommons.org/licenses

Accessibility

Video resources: includes closed captioning or subtitles

Comments

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This resource provided by:

Author:

Ginger Boyd

ALEX Classroom Resource

Monetary and Fiscal Policy: Crash Course Government #48