Warm Up – May 13 Answer the following questions on a post-it: 1. What are four economic indicators that can be used to measure the health of an economy? 2. What is GDP? 3. What does the unemployment rate measure? Why will the unemployment rate always be at least 4 – 5 %? 4. What Is inflation? 5. Describe the difference between a bull market and a bear market

Monetary Policy Article Take notes while reading the article focusing on the following topics: Definition of the Federal Reserve – what is it, what comprises its network and who oversees it Why its significant that the Federal Reserve is an independent agency What is the Fed’s mandate – what does this mandate mean? Describe the purpose of the Fed making decisions in regards to monetary policy Definition of Monetary Policy How do banks benefit from lower interest rates How do banks benefit from lower reserves How does the Fed slow down growth of the economy?

Fiscal Policy vs. Monetary Policy Monetary policy is primarily concerned with the management of interest rates and the total supply of money in circulation and is generally carried out by central banks such as the U.S. Federal Reserve.  Fiscal policy is the collective term for the taxing and spending actions of governments

TOD – May 13 Answer the following questions on the same post it as the warm up: What two factors are being examined with fiscal policy? Who makes fiscal policy? What document is used to determined what can be funded and what needs to be cut? What is Monetary Policy? Who makes it? What is the primary concern of Monetary Policy? How is this different from Fiscal Policy?