Analyzing Economic Issues (CIA4U)

Name: __________________

Expectations
Unit 8 Outline
Introduction
This unit introduces students to the role
of expectations and government in
understanding the national economy.
Students will examine the tools of fiscal
policy and the influence of government
spending and budgetary considerations
on the financial markets. Students will
also learn about the influence of
consumer and business expectations on
the economy.

Big Questions
The main overarching question of this course is: How do individuals and societies make sense of
and assess economic information to make decisions?

By the end of this unit, you will be able to answer the following questions:

1. Why do governments manage the economy?

2. How do governments manage the economy?
3. How do we assess government management the economy?
(How do expectations influence the economy?)

Assessment and Evaluation

Assessment for Learning Assessment of Learning Assessment as
(Formative) (Summative) Learning (Formative)
 Mind Map  Unit Test  Diagnostic
 Newspaper Analysis Worksheet
 Unit Quest (Google Form)  Teacher-Student
 Morton Workbook conferences
Activities
*See Learning Goals and Success Criteria Checklist at the end of this outline for more
information about our learning targets for this unit.*
 Analyzing Economic Issues (CIA4U)
Name: __________________

Key Terms, Concepts and Skills

Graphing & Numeracy Skills
1. Calculate a government budget balance (deficit, surplus, balanced)
2. Understand and apply the balanced budget multiplier.
3. Graph and interpret shifts in the market for loanable funds and assess the impact of
government deficit spending (equilibrium analysis).

Key Vocabulary

Taxation Automatic Stabilizer Taxation Multiplier

Debt Discretionary fiscal policy Loanable Funds Market
Deficit Transfers Crowding Out
Surplus Short run and Long run Phillips Curve Full Employment
Balanced Budget Government Spending Multiplier Expansionary fiscal policy
Multiplier
Contractionary fiscal Budget surplus, deficit Bonds
policy

Unit 8: Government and Expectations (Lesson Thread)

Flow of Content
Fiscal Policy (Discretionary vs Automatic, Expansionary vs Contractionary, taxation,
spending, transfers,)
Government Budget Implications (Surplus, Deficit, & Debt, Loanable Funds Market,
Crowding Out)
Expectations and the Economy (Phillips Curve, Equilibrium Analysis SR & LR)
Policy Debates (Keynesian vs Conservative, Supply side arguments, Paradox of Thrift,
Crowding Out, Appropriate Role of Government, Student Budget Consultation)
 Analyzing Economic Issues (CIA4U)
Name: __________________

Pre-Learning Assessment

1) Why do governments manage the economy?

Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)

Post-Learning (What do understand now?)

I used to think/understand ______________ about government management of I now

think/understand _____________ because ____________________.
 Analyzing Economic Issues (CIA4U)
Name: __________________

2) How do governments manage the economy?

Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)

Post-Learning (What do understand now?)

I used to think/understand ______________ about government management of the

economy. I now think/understand _____________ because ____________________.
 Analyzing Economic Issues (CIA4U)
Name: __________________

3) How can we assess government economic management? How do

expectations influence the economy?

Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)

Post-Learning (What do understand now?)

I used to think/understand ______________ about government management of the

economy. I now think/understand _____________ because ____________________.
Analyzing Economic Issues (CIA4U)
Name: __________________
 Analyzing Economic Issues (CIA4U)
Name: __________________

Learning Goals and Success Criteria Checklist

LEVEL of SUCCESS CRITERIA ACCOMPLISHED

UNDERSTANDING
Why do governments manage the economy?
Idea(s) I can define expansionary and contractionary fiscal policy.

I can list the tools available to the government to execute fiscal

policy.

I can draw a graph of the loanable funds market.

I can explain what crowding out means.

I can define the key terms listed in the unit outline.

Relating Ideas I can compare and contrast the tools and purposes of fiscal and
monetary policy.

I can demonstrate the concept of “crowding out” using a graph of

the loanable funds market.

I can assess the consequences of government fiscal policy choices

and decisions.

Extending Ideas I can critique and extend my understanding of government fiscal

policy to include recent global and local economic developments.

I can make meaningful connections between what I’ve learned about

the government fiscal policy to other subjects and the world around
me.
How do governments manage the economy?
Idea(s) I can define and explain the difference between expansionary and
contractionary fiscal policy.

I can define taxation, spending, and transfers.

I can define the items that are included in the government’s budget
and apply my understanding to assess when a government budget is
in deficit or surplus.
 Analyzing Economic Issues (CIA4U)
Name: __________________

I can define inflation and its related concepts and explain sources of
changes in the aggregate price level.

Relating Ideas I can analyze the effects of shifts in money demand and supply on an
economy’s nominal interest rate.

I can interpret and explain the effects of shifts in the supply and
demand for foreign currency on the exchange rate.

I can analyze the effects of changes in the aggregate price level on

purchasing power and its effects on a variety of economic
stakeholders (consumers, savers, businesses, government, banks,
retirees, borrowers, etc…)
Extending Ideas I can evaluate the effects of changes in the three (3) prices of money
on the economy.

I can make meaningful connections between what I’ve learned about

the effects of money on the economy to the current state of the
Canadian economy and our previous unit (business cycle & output).
How can we assess government economic management? ? How do expectations influence the
economy?
Idea(s) I can define the role and purpose of the central and commercial
banks.

I can explain how commercial banks “create money”.

I can define the simple money multiplier.

I can define the differing rates of interest charge in the economy (i.e.
discount, federal funds, and the prime rates).

I can list and explain the tools of monetary policy.

I can define and explain the determinants of the supply and demand
for loanable funds.

I can explain the direct and indirect transmission process of

monetary policy.
Relating Ideas I can calculate changes in the money supply using the simple money
multiplier.
 Analyzing Economic Issues (CIA4U)
Name: __________________

I can analyze a commercial bank’s T-Account (balance sheet) to

understand the influence of changes in demand deposits and the
reserve requirements on primary and secondary loans.

I can analyze shifts of demand and supply for loanable funds on the
real interest rate.

I can explain the effects of changes of the real interest rate on

economic growth and policy.

I can analyze the effects of contractionary and expansionary

monetary policy on nominal interest rates, investment demand,
output (AS/AD), and the value of a country’s currency (exchange
rate).

Extending Ideas I can engage in the debate around differing opinions about the
appropriate role of the central bank and monetary policy.

I can make meaningful connections between what I’ve learned about

the money management on the economy to the current state of the
Canadian economy (business cycle & output).