Chapter 14: Inflation Impact and Activity 1: How Objectives: Measurement Inflation Affects You 1. Explain the reason for COLAs. (pp. 2. Identify the groups that are harmed 157–58) Activity 2: Creating by inflation and explain why. Your Own CPI 3. Name the two measures used by (p. economists to gauge inflation. 159) Activity 3: Changes in 4. Identify the uses of the CPI. the Price Level vs. 5. Describe the limitations of the CPI. Changes in the Worldview: Prices of Classes of Inflationary woes, like other economic Goods (pp. problems, are often produced by 161–62) and consequently are man’s sin remedied by turning from man’s way to way. God’s Causes and Activity 4: The Phillips Objectives: Cures Curve: An Either/Or 1. Describe cost-push inflation. Fallacy (pp. 2. Describe demand-pull inflation. 163–65) 3. Explain why growth of the money supply is the root cause of inflation. 4. Explain the results of using wage and price controls as a cure for inflation. Chapter Review 293 293 Activity 5: Review (pp. 167–68) Chapter Test Chapter 15: Fiscal Policy Governmental 301–7 301–7 Activity 1: The Objectives: Spending National Debt and 1. Define fiscal policy. the GDP (pp. 2. Explain to the Keynes’s solution business cycle. 3. Describe the marginal propensity to consume and its effect on the money supply. 4. List and explain the problems of governmental spending as a tool of fiscal policy. Worldview: 1. A Christian has a responsibility to pray for his country and its leaders. 2. Though not neglecting civic responsibilities, the Christian’s confidence is not in government or its leaders but in God. Taxation Activity 2: Taxes and Objectives: Incentive to Work 1. List the major sources of the (pp. 173–74) government’s tax revenue. 2. Contrast proportional taxes, progressive taxes, and regressive taxes. 3. List and explain the problems with taxation as a tool of fiscal policy. Governmental Activity 4: Objectives: Borrowing Computations 1. Explain the Keynesian concept of (p. 177) “pump priming.” 2. List and explain the problems with governmental borrowing as a tool of fiscal policy.
Chapter 14: Inflation Impact and Measurement Activity 1: How Inflation Affects You (pp. 157–58) Activity 2: Creating Your Own CPI (p. 159) Activity 3: Changes in the Price Level vs. Changes in the Prices of Classes of Goods (pp. 161–62) Objectives: 1. Explain the reason for COLAs. 2. Identify the groups that are harmed by inflation and explain why. 3. Name the two measures used by economists to gauge inflation. 4. Identify the uses of the CPI. 5. Describe the limitations of the CPI. Worldview: Inflationary woes, like other economic problems, are often produced by man’s sin and consequently are remedied by turning from man’s way to God’s way. Causes and Cures Activity 4: The Phillips Curve: An Either/Or Fallacy (pp. 163–65) Objectives: 1. Describe cost-push inflation. 2. Describe demand-pull inflation. 3. Explain why growth of the money supply is the root cause of inflation. 4. Explain the results of using wage and price controls as a cure for inflation. Chapter Review 293 293 Activity 5: Review (pp. 167–68) Chapter Test Chapter 15: Fiscal Policy Governmental Spending 301–7 301–7 Activity 1: The National Debt and the GDP (pp. Objectives: 1. Define fiscal policy. 2. Explain Keynes’s solution to the business cycle. 3. Describe the marginal propensity to consume and its effect on the money supply. 4. List and explain the problems of governmental spending as a tool of fiscal policy. Worldview: 1. A Christian has a responsibility to pray for his country and its leaders. 2. Though not neglecting civic responsibilities, the Christian’s confidence is not in government or its leaders but in God. Taxation Activity 2: Taxes and Incentive to Work (pp. 173–74) Objectives: 1. List the major sources of the government’s tax revenue. 2. Contrast proportional taxes, progressive taxes, and regressive taxes. 3. List and explain the problems with taxation as a tool of fiscal policy. Governmental Borrowing Activity 4: Computations (p. 177) Objectives: 1. Explain the Keynesian concept of “pump priming.” 2. List and explain the problems with governmental borrowing as a tool of fiscal policy.
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