How does the Fed manipulate the money supply in the United States? After reading a comic book on monetary policy and answering guided questions, your class members will participate in an interactive online simulation in which they will discover how altering the federal funds rate affects unemployment and inflation. They will then create comic books detailing their learning about the Federal Reserve System.

Concepts

the united states economy, the federal reserve system, monetary policy, money supply, inflation, gross domestic product, interest rates, recessions

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Additional Tags

the fed, federal open market committee, social studies

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Instructional Ideas

• The simulation would be best performed as a whole group so the instructor can help explain cause and effect

Classroom Considerations

• Class members should be introduced to the basic concept of the Federal Reserve, including the Board of Governors, Federal Reserve banks, and member banks, before this lesson

Pros

• A PDF of a monetary policy comic book is included
• Guided reading questions are provided for the comic book, as well as an answer key

Cons

• None

Common Core

RH.9-10.1 RH.9-10.2