EconEdLink - Monetary Tug-of-War: Limited vs. Ample Reserves

Objective

The student will be able to

review the concepts of limited and ample reserves.
accurately illustrate changes in monetary policy by adjusting limited and ample reserve curves accordingly.

Materials/Pre Lesson Prep

Class set of Graphs – Student Handout. These should be color copies, or black and white copies with the Sm and Dm curves highlighted in red/blue. Copies may be laminated to be reused multiple times.
Cut yarn for activity – per student:
- Two pieces of red yarn, each about 4 inches in length
- One piece of blue yarn, about 4 inches in length
- 2 pieces of blue yarn, each about 2 inches in length.
- Student graph handout with yarn before activity
- The yarn color can change, but must match what color is on the graph sheet.

Access to Quizzizz

Lesson Plan

Warm Up

Review limited and ample reserve terms and key points with students. This information is located in the PPT Slides. Answer the discussion question: What is the main difference between ample and limited monetary policy, and how does each approach reflect the economy? A sentence starter is provided in the Slideshow as a scaffolding tool for students who may need extra assistance.

Modeling

Continue through the short lecture slides on the differences and characteristics of ample vs limited monetary policy.

After finishing the lecture slides, begin to explain and demonstrate the procedure for the “string graphs.”

1. Distribute one laminated graph, two blue pieces of yarn, and one red piece of yarn to each student or pair of students.

2. Explain that the teacher will read a scenario. Based on that scenario each student will place the appropriate color yarn where the new line would be located on each graph.

Activity

As the students are placing their yarn on the graph, the teacher will circulate around the room answering questions and assess student understanding. After all of the students have placed their yarn on their graph, the teacher will read the scenario again and ask the class in which direction the line moved. After verifying the correct answer, the teacher will ask why that line moved? This process will be repeated with other scenarios.

Assessment:

After class discussion of all of the string graph scenarios, students will complete the Quizzizz Monetary Policy: Limited vs Ample for individual practice/assessment.

Monetary Policy: Limited vs Ample (individual practice)

https://quizizz.com/admin/quiz/682e095f204458a27732ff06?at=683f6952cfd0e90f655189ad&MCQ_saved=true

Extension:

Fiscal, Limited Monetary, & Ample Monetary Policies (extension activity)

https://quizizz.com/admin/quiz/6814d396002e2447304af44f?searchLocale=

As a conclusion, you could have the students write their own prompt and draw the corresponding graph.