The Crash of 2008: Cause and Aftermath. By James Gwartney, David Macpherson, Russell Sobel, and Richard Stroup provides a comprehensive analysis of the current economic crisis. This crisis is likely to be the most important macroeconomic event of our lifetime. The Crash of 2008: Cause and Aftermath addresses the cause, analyzes the future, and considers the often ask question of whether we are headed for another Great Depression. Economic Crisis 2008 will help teachers communicate valuable information to students. Test questions are available in the secured test bank. Visit the CSE Hot Topics page for other resources connected to the crisis.
Activity: Budgeting and Financial Fitness for Life This feature provides supplementary analysis for the material in Part IV of Common Sense Economics, particularly Element 3 on how to use budgeting to help you save regularly and spend your money effectively. There are three budgeting exercises that can be completed sequentially or separately.
Activity: Inflation, the Consumer Price Index and How to Measure Inflation This activity illustrates the importance of price stability as a source of economic progress. The Consumer Price Index (CPI) is a measure of the average change in prices over time in a market basket of goods and services. The Bureau of Labor Statistics releases CPI data monthly. The CPI is used to calculate how prices have changed over the years. Let’s say you have $100 in your pocket to purchase some goods and services today. How much money would you have needed in 1950 to buy the same amount of goods and services? Determining the inflation rate by using the CPI of today and 1950 can help you answer this question.
Activity. Demand, Supply, and Adjustments to Dynamic Change Common Sense Economics highlights how markets work and their impact on the allocation of resources especially in Part I. This feature will investigate this issue in more detail. It will use graphical analysis to analyze demand, supply, determination of the market price, and how markets adjust to dynamic change.
Activity: What is a Dollar Worth? By the Federal Reserve System, Minneapolis, District 9 The value of a dollar varies through time. Use the inflation rate to compare the value of $1, $10, $100 and more over time in the U.S.
Activity: Fiscal Policy and Budget Deficits This activity focuses on fiscal policy, what it is and discusses the advantages and disadvantages associated with using fiscal policy as a tool with which to promote economic stability and strong growth. Special attention is drawn to how fiscal policy can influence output, income, and price levels.
Activity: What Is the Unemployment Rate and How Is It Measured? This feature provides supplementary analysis for the material in Part II of Common Sense Economics. It discusses unemployment. Employment matters. Employment generates income, and income funds spending, saving, investing, and charitable giving. During periods of unemployment, people must draw down savings, withdraw investments, depend on transfer payments like unemployment compensation or welfare, reduce spending, or turn to other means to finance their daily expenses. So, it is important to know what the rate of unemployment or joblessness is and how it is measured.
Activity: Monetary Policy: How Is It Conducted and How Does It Affect the Economy? Economics stresses the contribution of monetary and price stability as a source of long-term economic growth. This activity provides details on how monetary policy is conducted and considers how it influences fluctuations in the levels of output and employment. This feature, along with the activity on “Fiscal Policy and Budget Deficits”, provides important information about how monetary and fiscal policies influence economic fluctuations.
Activity: What Is the Unemployment Rate and How Is It Measured? This activity focuses on unemployment. Employment matters. Employment generates income, and income funds spending, saving, investing, and charitable giving. During periods of unemployment, people must draw down savings, withdraw investments, depend on transfer payments like unemployment compensation or welfare, reduce spending, or turn to other means to finance their daily expenses. So, it is important to what the rate of unemployment or joblessness is and how it is measured.
Activity: Who Pays for Government or Private Projects and Why It Matters Goods and services can be either produced by private enterprises or supplied by the government. They can be paid for either directly by consumers or indirectly by taxpayers or another third party. Does who pays make any difference in the quality or quantity of what is produced, for whom, and how much? The answer may surprise you.