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Logistics • • • Welcome Call-in number: 888 -625 -5230 Participant code: 3265 0242# Webinar Link: https: //www. webcaster 4. com/Webcast/Page/577/31030 This call is being recorded and archive will be made available. You can listen through your PC or dial in to the phone. Remember: your specific connection matters; if PC audio diminishes, dial in to the toll-free line. How we’ll take questions • Type your question in the field in the lower left corner of the webinar page and click the “Ask Question” button.
Disclaimer • The views expressed in this webinar are those of the presenters and not necessarily the views of the Federal Reserve Banks of Atlanta, Kansas City, and St. Louis or the Federal Reserve System. 2
New Semester, New Secondary Materials Lesley Mace, Senior Educational Outreach Consultant, Federal Reserve Bank of Atlanta, Jacksonville Branch. Gigi Wolf, Lead Economic Education Specialist for the Federal Reserve Bank of Kansas City. Andrea Caceres-Santamaria, Senior Economic Education Specialist, Federal Reserve Bank of St. Louis. 3
New Lessons and Activities from the Federal Reserve Bank of Atlanta Lesley Mace Sr. Education Program Manager Federal Reserve Bank of Atlanta– Jacksonville Branch Lesley. Mace@atl. frb. org 4
Infographic Topics v 17 Posters and 2 Online Infographics v 10 Economics topics v 7 Personal Finance topics v. Accompanying Lesson Plans v. Electronic versions online https: //www. frbatlanta. org/education/classroom-tools/infographics. aspx 5
Circular Flow Model Diagram Resource and Product Markets Role of Government Money Flows and Flows to and from Government • GDP and National Income Accounting • • 6
Circular Flow Activity 7
Circular Flow Activity 8
Circular Flow Activity 9
Circular Flow Activity 10
Entrepreneurship • What is an entrepreneur? • Types of entrepreneurs • Types of business organizations • Small business and personal finance • Economic impact of small business • First steps 11
Entrepreneurship Activity Entrepreneurship 4 Corners Activity 12
New Lesson: Unlocking the Mystery to Measuring GDP Year Cheese Crackers Price Quantity 2016 $2 20 $3 30 2017 $3 25 $3 40 2018 $4 30 $4 40 • Calculating Nominal GDP, Real GDP and GDP deflator • Group and Individual Practice 13
New Lesson: Unlocking the Mystery to Measuring GDP Image Source: Wikimedia Commons 14
New Lesson: Unlocking the Mystery to Measuring GDP 15
New Lesson: Unlocking the Mystery to Measuring GDP 16
New Lesson: Boardroom Video Activity • Activity accompanies Federal Reserve Bank of Atlanta’s Boardroom video • First step: Public Kahoot reviews basic vocabulary before video is viewed 17
New Lesson: Boardroom Video Activity • Matching activity reinforces the video content on the influence of interest rates on loans 18
New Lesson: Boardroom Video Activity 19
New Lesson: Boardroom Video Activity 20
New Lesson: Boardroom Video Activity • Concluding Activity Creating a three tab foldable booklet Board of Directors Regional Network Research economists Atlanta Fed President: Monetary Policy 21
KANSAS CITY FED RESOURCES 22
FEDERAL RESERVE BANK OF KANSAS CITY Gigi Wolf Lead Economic Education Specialist Federal Reserve Bank of Kansas City Gigi. wolf@kc. frb. org kansascityfed. org/education 23
Conscious Consumer Infographic • Becoming a Conscious Consumer: Tips for practicing wise spending habits 24
Responsible Credit Use Infographic Laying the Foundation for Responsible Credit Use: manage money more effectively and understand the costs and benefits of debt 25
Money Mindsets Infographic Money Mindsets: Examines five mindsets that people have regarding money 26
Prepaid Cards Infographic Perusing Prepaid Cards: Explore the pros and cons of prepaid cards 27
Your Paycheck Infographic Understanding Your Paycheck: Learn about components of a paycheck and how to manage your money 28
Youth Entrepreneurship Infographic The Case for Youth Entrepreneurship: Encourage entrepreneurial thinking and the exploration of a career in entrepreneurship 29
Founding Fathers’ Feud Objectives: • Compare and contrast the Articles of Confederation and the U. S. Constitution • Understand the ideologies of Federalists and Anti-Federalists • Defend either perspective in regards to a central bank Concepts: Central bank, Federal Reserve System, Federalist, Anti-Federalist, Articles of Confederation, U. S. Constitution Grade: 9 -12 Time: 3 class periods (50 min. each) 30
Founding Fathers’ Feud Day One: • Articles of Confederation and why it was replaced by the United States Constitution • Introduction to Alexander Hamilton and Thomas Jefferson and their views as a Federalist and Anti. Federalist 31
Founding Fathers’ Feud Day Two: • Review Federalist and Anti-Federalist viewpoints and the advocates associated with each • Read about central banking and the Federal Reserve 32
Founding Fathers’ Feud Day Three: • Student presentations from the viewpoint of a Federalist or Anti-Federalist, including their stance on a central bank 33
Location: Let’s Start a Business Objectives: • Analyze local economic and geographic data • Create a list of traits for an ideal consumer • Interpret economic data in light of starting a business Concepts: • Entrepreneurship, consumers, income, unemployment rate, gross domestic product, minimum wage Grade: • 9 -12 Time: • 60 minutes 34
Location: Let’s Start a Business • Discuss what makes businesses successful and the characteristics of an entrepreneur 35
Location: Let’s Start a Business • Analyze economic data to identify the best location for their business 36
Connect with the KC Fed �Visit our website: KC Education - www. kansascityfed. org/education �Access our social media: (Kansas. City. Fed) Pinterest Twitter You. Tube Linked. In Gigi Wolf gigi. wolf@kc. frb. org 816 -881 -2736
Questions? Visit the Federal Reserve System’s national education website for free access to additional resources 38
GDP Expenditures: What Is GDP and How Do We Measure It? Presented by: Andrea Caceres-Santamaria Senior Economic Education Specialist Lesson Author: Scott Wolla Economic Education Coordinator
Gross Domestic Product (GDP) GDP: The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. 40
GDP GDP: The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. • The value of goods and service is determined by the prices paid by the end users. • The total of these prices is the total value of GDP. • U. S. GDP is measured in U. S. dollars. 41
GDP GDP: The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. • “Final” refers to goods and service sold to end users. • These goods and services have been purchased for final use and not for resale or further processing. • GDP does not include intermediate goods, which are man-made goods used to produce other goods or services, becoming part of those goods or services. • Excluding intermediate goods helps to avoid double counting. 42
GDP GDP: The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. • A good or service must be produced within the borders of the United States to be counted in U. S. GDP. • Getting this count correct requires a little accounting (covered later). 43
Real GDP: GDP adjusted for inflation to hold prices constant over time. 44
GDP and the Business Cycle Business cycle: The fluctuating levels of economic activity in an economy over a period of time measured from the beginning of one recession to the beginning of the next. Economic expansion: A period when real GDP increases; a period of economic growth. Economic contraction: A period when real GDP decreases; a period of economic decline. Recession: A period of declining real income and rising unemployment. It is a significant decline in general economic activity extending over a period of time. 45
GDP = C + I + G + (X M) GDP: The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. 46
GDP = C + I + G + (X M) Personal consumption expenditures (C): Spending by households on new not used goods and services. • Usually make up over two-thirds of GDP spending. 47
GDP = C + I + G + (X M) Gross private investment (I): Spending by businesses on machinery, factories, equipment, tools, and construction of new buildings. 48
GDP = C + I + G + (X M) Government purchases (G): Spending by all levels of government on goods and services, including spending on the military, schools, and highways. • Does not include spending on transfer payments, such as Social Security payments. 49
GDP = C + I + G + (X M) Prompt 1: Consumers spend $521 billion on new automobiles and parts. Which variables are affected? (Personal consumption expenditures—C—increase by $521 billion, so GDP increases by $521 billion. ) Prompt 2: Businesses spend $380 billion on new software. Which variables are affected? (Gross private investment—I—increases by $380 billion, so GDP increases by $380 billion. ) 50
Poll Question #1 GDP = C + I + G + (X M) Prompt 2: Businesses spend $380 billion on new software. Which variable is affected? A. Consumption B. Investment C. Government Expenditures Answer: (Gross private investment—I—increases by $380 billion, so GDP increases by $380 billion. ) 51
GDP = C + I + G + (X M) Exports (X): Resources, goods, or services that are produced domestically but sold abroad. • Includes final goods and services and intermediate goods. Prompt 7: Due to a strong European economy, German consumers and businesses increase their spending on U. S. goods and services. Which variables are affected? Exports—X—increase, so GDP increases by the same amount. ) 52
GDP = C + I + G + (X M) Include spending on both domestic and foreign goods and services. Gross domestic product (GDP): The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. Domestic: Inside a particular country. Imports (M): Goods or services produced abroad but sold domestically. 53
GDP = C + I + G + (X M) Imports (M): An accounting variable subtracted with the intent of correcting for the value of spending already counted as C, I, or G but actually spent on imported goods. • Includes intermediate goods 54
GDP = C + I + G + (X M) Prompt 9: Juan buys a new car for $30, 000; the car was produced in Japan. Personal consumption expenditures (C) increase by $30, 000, but the value of the car, an import (M) is subtracted, so the net effect is that GDP is unchanged. 55
GDP = C + I + G + (X M) Prompt 10: Jasmine buys a new car for $30, 000; the car was assembled in the United States, but the manufacturer used $10, 000 in imported parts in the production process. consumption expenditures (C) increase by $30, 000, but the value of the imported parts ($10, 000) is subtracted, so the net effect is that GDP increases by $20, 000. GDP = C + I + G + (X + $20, 000 + $30, 000 – M) – $10, 00 56
Poll Question #2 GDP = C + I + G + (X M) Prompt 11: ACME Inc. produces $30, 000 of car parts and exports them to Germany. Which Variables are affected? A. Imports (I) increases by $30, 000 B. Consumption (C) increases by $30, 000 C. Exports (X) increases by $30, 000 Answer: Exports (X) increase by $30, 000, so GDP increases by $30, 000. GDP = C + I + G + (X + $30, 000 + $30, 000 – M) 57
Personal consumption expenditures Government spending GDP = C + I + G + (X M) Gross private investment Exports Imports The balance of trade: (Exports Imports) 58
Closure • What does GDP measure? • What are the expenditure variables used to calculate GDP? • What happens when spending in one of the spending categories changes? • Which variables include intermediate goods in their measurement? • How is the M variable different from the others? • Does buying an imported good or service subtract from GDP? • How do changes in real GDP relate to the business cycle? 59
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