Standards for Short-Run Equilibrium and Changes in AS/AD
National Standards in Economics
Name: Economic Fluctuations
- Students will understand that: Fluctuations in a nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government agencies, and others in the economy. Recessions occur when overall levels of income and employment decline.
- Students will be able to use this knowledge to: Interpret media reports about current economic conditions and explain how these conditions can influence decisions made by consumers, producers, and government policy makers.
Name: Unemployment and Inflation
- Students will understand that: Unemployment imposes costs on individuals and the overall economy. Inflation, both expected and unexpected, also imposes costs on individuals and the overall economy. Unemployment increases during recessions and decreases during recoveries.
- Students will be able to use this knowledge to: Make informed decisions by anticipating the consequences of inflation and unemployment.