Economic Growth
National Income Acct
Real GDP & Price Level
Unemployment
Inflation
WATCH THE FOLLOWING POWER POINT PRESENTATIONS.
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(OPTIONAL) READ THE FOLLOWING CHAPTERS FROM THE TEXT.
05 - 07
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MACROECONOMICS REVIEW
ACTIVITY #1 RUBRIC
For every assignment, I have given you a grading rubric. If you look at the rubrics you will know exactly what I will look for when I grade your assignments. Each assignment's grading rubric will always be under Optional Downloads on the same Unit Page as the assignment instructions.
ACTIVITY #1: WHAT DOES A DOLLAR REALLY BUY? (10 POINTS)
In Activity #1, you will describe the purpose of a price index, explain how a price index is calculated, describe the weaknesses of the CPI, interpret CPI data as a measure of economic health and identify who is harmed and who is helped by inflation.
To begin, go to http://econedlink.org/227. The assignment is divided into several parts, which you should complete in the order given. (Please note that the first three parts are labeled Activity 1, 2 and 3 … don't let that confuse you. All of the parts are part of your 1st activity for this course.) I will not repeat the instructions from the website here but I do need to add to them a little. Because of that, some of what I've written below may confuse you. It will all make sense when you begin your work!
Follow the instructions given in the assignment except for the following changes.
In activities 1 & 3 you are told to print out your answers for your instructor. Don't print anything unless you want to keep it for yourself.
I want you to send only some of your work to me – and I'll tell you which in a minute – but you'll have to do all of the work in order to know what you're doing.
Complete activities 1-3 and the conclusion. You can skip the rest.
A WARNING OF SORTS: This 1st assignment involves some math and may look a little overwhelming when you begin. No matter what your specific situation, though, you will do fine if you will take your time and follow the instructions in the assignment. What you cannot do is to wait until the last minute and try to rush through the assignment. If you do, I suspect you will end up confused, frustrated and positive that the material is beyond you. It's not … but it does require your attention (focus on what you are doing) and your determination (keep trying until you get it). The material in this assignment will initially be foreign to most of you since you are unfamiliar with economic concepts. Once you've completed it, you'll realize that it deals with fairly low-level math and basic economic ideas. The good news is that
it involves issues we're all interested in given this economy.
Feel free to do all or parts of the assignment as many times as you need in order to feel comfortable with the material BUT don't try to do it all at once. Complete a little here and there as you have time. Once you have completed the work in activities 1-3 and the conclusion to your satisfaction, you must send some of that work to me. I will expect you to send the following items.
How is the CPI market basket determined?
What goods and services does the CPI cover?
How are CPI prices collected and reviewed?
How do you read or interpret an index?
Do the published averages match an individual's inflation experience?
How is the CPI used?
What are some limitations of the index?
Will the CPI be revised or updated in the future?
What five items / services did you purchase in the 1990s?
What was the rate of inflation for your CPI?
What is the purpose of a price index?
How is a price index calculated?
What are the weaknesses of the CPI as a measure of inflation?
What does a high/low level of inflation mean for the economy?
Who is harmed and who is helped by inflation?
Make specific and detailed connections to course content.
By the deadline shown in the Course Schedule on the main page of the syllabus:
READ THE FOLLOWING SECTIONS FROM THE MARGIN NOTES.