When a country faces a recession, the government has various options: decrease taxes to stimulate consumer spending or increase taxes to fund projects. Which works best? Young economists ponder this question, along with how an increase in demand for French goods in the United States affects the value of the dollar, and the impact of money supply. 

Concepts

supply and demand, test preparation, macroeconomics, money supply, international trade, interest rates, foreign currency, income tax, recessions, monetary policy

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Additional Tags

social studies

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Instructional Ideas

• Use problems to reinforce content after direct instruction
• Structure a class discussion based on the case studies

Classroom Considerations

• Resource contains the free-response questions from the 2000 AP® Macroeconomics exam

Pros

• Problems are adaptable to a variety of classroom uses, not just exam prep
  
• Scoring guidelines and rubrics make feedback easy to give

Cons

• None

Common Core

RH.9-10.1 RH.9-10.2 RH.9-10.3 RH.9-10.10 RH.11-12.1 RH.11-12.2 RH.11-12.3 RH.11-12.10