Civics Core 100, Goal 9 Goal 9: The learner will analyze factors influencing the United States economy.

People and nations all over the world now depend on one another for many goods and services People and nations all over the world now depend on one another for many goods and services TRADE TRADE

The economy grows over time through alternating intervals of growth and decline called the business cycle The economy grows over time through alternating intervals of growth and decline called the business cycle

Environmental Protection (EPA) Environmental Protection (EPA) Citizens ’ safety (OSHA- workplace protection, CPSC- consumer protection) Citizens ’ safety (OSHA- workplace protection, CPSC- consumer protection) Affirmative Action Affirmative Action Labor disputes Labor disputes Deregulation Deregulation

Facts, data, etc. that show the present and/or future health of the economy Facts, data, etc. that show the present and/or future health of the economy GDP- total value of all final goods and services produced in an economy GDP- total value of all final goods and services produced in an economy Per Capita GDP- calculates number of goods produced per person; divide GDP by population Per Capita GDP- calculates number of goods produced per person; divide GDP by population Standard of Living- level of economic prosperity at which people live Standard of Living- level of economic prosperity at which people live Consumer Price Index- measures monthly changes in costs of goods and services typically purchased by consumers Consumer Price Index- measures monthly changes in costs of goods and services typically purchased by consumers Stock Market- bull market= rising, bear market= falling Stock Market- bull market= rising, bear market= falling

Movement of people from one location in a country to another Movement of people from one location in a country to another People are leaving the Rust Belt and the Frost Belt to move to the Sun Belt states People are leaving the Rust Belt and the Frost Belt to move to the Sun Belt states Silicon Valley in California is the hub of the US computer industry Silicon Valley in California is the hub of the US computer industry Research Triangle Park in NC is a prominent high tech research and development center Research Triangle Park in NC is a prominent high tech research and development center

European Union (EU): org of independent European nations European Union (EU): org of independent European nations North American Free Trade Agreement (NAFTA): will eventually eliminate all barriers to trade among US, Canada, and Mexico North American Free Trade Agreement (NAFTA): will eventually eliminate all barriers to trade among US, Canada, and Mexico World Trade Organization (WTO): oversees trade among all nations World Trade Organization (WTO): oversees trade among all nations

Free Trade: reduced barriers on trade Free Trade: reduced barriers on trade To increase trade, countries join together with a few key trading partners to set up zones of free trade To increase trade, countries join together with a few key trading partners to set up zones of free trade Protectionism: tariffs placed on imports; price of foreign goods goes up and makes local prices more competitive Protectionism: tariffs placed on imports; price of foreign goods goes up and makes local prices more competitive to protect domestic products to protect domestic products Can lead to trade wars: set up even greater trade barriers Can lead to trade wars: set up even greater trade barriers

Fiscal Policy (Taxing and Spending) Fiscal Policy (Taxing and Spending) Decrease taxes= more disposable income, economic growth Decrease taxes= more disposable income, economic growth Increase taxes= slows economy, can be used to curb inflation Increase taxes= slows economy, can be used to curb inflation Progressive Taxes, Regressive Taxes, Proportional Taxes, Income Taxes, Excise Taxes, Sales Taxes, etc. Progressive Taxes, Regressive Taxes, Proportional Taxes, Income Taxes, Excise Taxes, Sales Taxes, etc.

Changes in government spending or tax policies Changes in government spending or tax policies Long term economic goals Long term economic goals Important economic tool because of its ability to affect the total amount of output produced (GDP) Important economic tool because of its ability to affect the total amount of output produced (GDP)

Controlling of the supply of money and the cost of borrowing money (credit) Controlling of the supply of money and the cost of borrowing money (credit) Short term economic goals Short term economic goals The Federal Reserve System can increase or decrease the supply of money The Federal Reserve System can increase or decrease the supply of money