Tuesday, September 29, 2009
Honors Econ Unit III Notes Part A
Please see AP Macro Unit III Notes part A--we are covering the same basics at the beginning of this unit.
AP Macro Unit III Notes Part A
Labor Force Statistics
*Produced by Bureau of Labor Statistics (BLS), in the U.S. Dept. of Labor
*Based on regular survey of 60,000 households
*Based on “adult population” (16 yrs or older)
BLS divides population into 3 groups:
•employed: paid employees, self-employed, and unpaid workers in a family business
•unemployed: people not working who have looked for work during previous 4 weeks
•not in the labor force: everyone else
The labor force is the total # of workers, including the employed and unemployed.
Unemployment rate (“u-rate”): % of the labor force that is unemployed
Labor force participation rate: % of the adult population that is in the labor force
*The BLS publishes these statistics for demographic groups within the population.
*These data reveal widely different labor market experiences for different groups.
The u-rate is not a perfect indicator of joblessness or the health of the labor market:
•excludes discouraged workers
•does not distinguish between full-time and part-time work, or people working part time because full-time jobs not available
•some people misreport their work status in the BLS survey
Despite these issues, the u-rate is still a very useful barometer of the labor market & economy
Most spells of unemployment are short:
•Typically 1/3 of the unemployed have been unemployed < 5 weeks, 2/3 have been unemployed < 14 weeks.
•Only 20% have been unemployed > 6 months.
Yet, most observed unemployment is long term.
•The small group of long-term unemployed persons has fairly little turnover, so it accounts for most of the unemployment observed over time.
Knowing these facts helps policymakers design better policies to help the unemployed.
There’s always some unemployment, though the u-rate fluctuates from year to year.
The natural rate of unemployment
•the normal rate of unemployment around which the actual unemployment rate fluctuates
cyclical unemployment
•the deviation of unemployment from its natural rate
•associated with business cycles, which we’ll study in later chapters
Even when the economy is doing well, there is always some unemployment, including:
frictional unemployment
•occurs when workers spend time searching for the jobs that best suit their skills and tastes
•short-term for most workers
structural unemployment
•occurs when there are fewer jobs than workers
•usually longer-term
Workers have different tastes & skills, and jobs have different requirements.
Job search is the process of matching workers with appropriate jobs.
Sectoral shifts are changes in the composition of demand across industries or regions of the country.
Such shifts displace some workers, who must search for new jobs appropriate for their skills & tastes.
The economy is always changing, so some frictional unemployment is inevitable.
Govt employment agencies: give out information about job vacancies to speed up the matching of workers with jobs
Public training programs: aim to equip workers displaced from declining industries with the skills needed in growing industries
Unemployment insurance (UI): a govt program that partially protects workers’ incomes when they become unemployed
UI increases frictional unemployment. To see why, recall one of the Ten Principles of Economics: People respond to incentives.
UI benefits end when a worker takes a job, so workers have less incentive to search or take jobs while eligible to receive benefits.
Benefits of UI:
*reduces uncertainty over incomes
*gives the unemployed more time to search, resulting in better job matches and thus higher productivity
The min. wage may exceed the eq’m wage for the least skilled or experienced workers, causing structural unemployment.
But this group is a small part of the labor force, so the min. wage can’t explain most unemployment.
Union: a worker association that bargains with employers over wages, benefits, and working conditions
*Unions exert their market power to negotiate higher wages for workers.
*The typical union worker earns 20% higher wages and gets more benefits than a nonunion worker for the same type of work.
“Insiders” – workers who remain employed, they are better off
“Outsiders” – workers who lose their jobs, they are worse off
*Some outsiders go to non-unionized labor markets, which increases labor supply and reduces wages in those markets.
Are unions good or bad? Economists disagree.
*Critics: Unions are cartels. They raise wages above eq’m, which causes unemployment and/or depresses wages in non-union labor markets.
*Advocates: Unions counter the market power of large firms, make firms more responsive to workers’ concerns.
§The theory of efficiency wages: firms voluntarily pay above-equilibrium wages to boost worker productivity.
§Different versions of efficiency wage theory suggest different reasons why firms pay high wages.
Four reasons why firms might pay efficiency wages:
1. Worker healthIn less developed countries, poor nutrition is a common problem. Paying higher wages allows workers to eat better, makes them healthier, more productive.
2. Worker turnoverHiring & training new workers is costly. Paying high wages gives workers more incentive to stay, reduces turnover.
3. Worker qualityOffering higher wages attracts better job applicants, increases quality of the firm’s workforce.
4. Worker effortWorkers can work hard or shirk. Shirkers are fired if caught. Is being fired a good deterrent?
Depends on how hard it is to find another job. If market wage is above eq’m wage, there aren’t enough jobs to go around, so workers have more incentive to work not shirk.
The natural rate of unemployment consists of
frictional unemployment
•it takes time to search for the right jobs
•occurs even if there are enough jobs to go around
structural unemployment
•when wage is above eq’m, not enough jobs
•due to min. wages, labor unions, efficiency wages
In later chapters, we will learn about cyclical unemployment, the short-term fluctuations in unemployment associated with business cycles.
*Produced by Bureau of Labor Statistics (BLS), in the U.S. Dept. of Labor
*Based on regular survey of 60,000 households
*Based on “adult population” (16 yrs or older)
BLS divides population into 3 groups:
•employed: paid employees, self-employed, and unpaid workers in a family business
•unemployed: people not working who have looked for work during previous 4 weeks
•not in the labor force: everyone else
The labor force is the total # of workers, including the employed and unemployed.
Unemployment rate (“u-rate”): % of the labor force that is unemployed
Labor force participation rate: % of the adult population that is in the labor force
*The BLS publishes these statistics for demographic groups within the population.
*These data reveal widely different labor market experiences for different groups.
The u-rate is not a perfect indicator of joblessness or the health of the labor market:
•excludes discouraged workers
•does not distinguish between full-time and part-time work, or people working part time because full-time jobs not available
•some people misreport their work status in the BLS survey
Despite these issues, the u-rate is still a very useful barometer of the labor market & economy
Most spells of unemployment are short:
•Typically 1/3 of the unemployed have been unemployed < 5 weeks, 2/3 have been unemployed < 14 weeks.
•Only 20% have been unemployed > 6 months.
Yet, most observed unemployment is long term.
•The small group of long-term unemployed persons has fairly little turnover, so it accounts for most of the unemployment observed over time.
Knowing these facts helps policymakers design better policies to help the unemployed.
There’s always some unemployment, though the u-rate fluctuates from year to year.
The natural rate of unemployment
•the normal rate of unemployment around which the actual unemployment rate fluctuates
cyclical unemployment
•the deviation of unemployment from its natural rate
•associated with business cycles, which we’ll study in later chapters
Even when the economy is doing well, there is always some unemployment, including:
frictional unemployment
•occurs when workers spend time searching for the jobs that best suit their skills and tastes
•short-term for most workers
structural unemployment
•occurs when there are fewer jobs than workers
•usually longer-term
Workers have different tastes & skills, and jobs have different requirements.
Job search is the process of matching workers with appropriate jobs.
Sectoral shifts are changes in the composition of demand across industries or regions of the country.
Such shifts displace some workers, who must search for new jobs appropriate for their skills & tastes.
The economy is always changing, so some frictional unemployment is inevitable.
Govt employment agencies: give out information about job vacancies to speed up the matching of workers with jobs
Public training programs: aim to equip workers displaced from declining industries with the skills needed in growing industries
Unemployment insurance (UI): a govt program that partially protects workers’ incomes when they become unemployed
UI increases frictional unemployment. To see why, recall one of the Ten Principles of Economics: People respond to incentives.
UI benefits end when a worker takes a job, so workers have less incentive to search or take jobs while eligible to receive benefits.
Benefits of UI:
*reduces uncertainty over incomes
*gives the unemployed more time to search, resulting in better job matches and thus higher productivity
The min. wage may exceed the eq’m wage for the least skilled or experienced workers, causing structural unemployment.
But this group is a small part of the labor force, so the min. wage can’t explain most unemployment.
Union: a worker association that bargains with employers over wages, benefits, and working conditions
*Unions exert their market power to negotiate higher wages for workers.
*The typical union worker earns 20% higher wages and gets more benefits than a nonunion worker for the same type of work.
“Insiders” – workers who remain employed, they are better off
“Outsiders” – workers who lose their jobs, they are worse off
*Some outsiders go to non-unionized labor markets, which increases labor supply and reduces wages in those markets.
Are unions good or bad? Economists disagree.
*Critics: Unions are cartels. They raise wages above eq’m, which causes unemployment and/or depresses wages in non-union labor markets.
*Advocates: Unions counter the market power of large firms, make firms more responsive to workers’ concerns.
§The theory of efficiency wages: firms voluntarily pay above-equilibrium wages to boost worker productivity.
§Different versions of efficiency wage theory suggest different reasons why firms pay high wages.
Four reasons why firms might pay efficiency wages:
1. Worker healthIn less developed countries, poor nutrition is a common problem. Paying higher wages allows workers to eat better, makes them healthier, more productive.
2. Worker turnoverHiring & training new workers is costly. Paying high wages gives workers more incentive to stay, reduces turnover.
3. Worker qualityOffering higher wages attracts better job applicants, increases quality of the firm’s workforce.
4. Worker effortWorkers can work hard or shirk. Shirkers are fired if caught. Is being fired a good deterrent?
Depends on how hard it is to find another job. If market wage is above eq’m wage, there aren’t enough jobs to go around, so workers have more incentive to work not shirk.
The natural rate of unemployment consists of
frictional unemployment
•it takes time to search for the right jobs
•occurs even if there are enough jobs to go around
structural unemployment
•when wage is above eq’m, not enough jobs
•due to min. wages, labor unions, efficiency wages
In later chapters, we will learn about cyclical unemployment, the short-term fluctuations in unemployment associated with business cycles.
Sunday, September 20, 2009
Honors Economics
Don't forget you have your Unit II test on Tuesday (copper)/Wednesday (Black). Make sure you have completed the "take home" portion and are ready for the closed book portion of your test. The test covers GDP, CPI, inflation, GDP deflator, etc. Best of luck!
AP Macroeconomics
Don't forget you have your Unit II test on Tuesday (copper)/Wednesday (Black). Make sure you have completed the "take home" portion and are ready for the closed book portion of your test. The test covers GDP, CPI, inflation, GDP deflator, etc. Best of luck!
Tuesday, September 15, 2009
Honors World History Rome Notes
Ancient Rome
Rome’s Geography
•·Site of Rome chosen for its ______________ and ______________
•·Located on Italian peninsula in center of ______________ Sea
•·Built on______________ hills on Tiber River
The First Romans
•·Latins, Greeks, and Etruscans compete for control of region
•·______________ found original settlement of Rome between 1000 and 500 B.C.
•·______________ native to northern Italy; influence Roman civilization
Early Rulers
•·Around 600 B.C., Etruscan kings begin to rule Rome
•·Kings build Rome’s ______________ and ______________
• ·Romans overthrow ______________ in 509 B.C.
•·Romans found a _____________—government in ____________________________
Patricians and Plebeians
•·Different groups struggle for power in early Roman Republic
•·Patricians—____________________________
•·Plebeians—artisans, merchants, and farmers; ______________, ______________
•·Tribunes—elected representatives ____________ plebeians’ political ______________
Twelve Tables
•·In 451 B.C. officials carve Roman laws on twelve ______________
•·Called Twelve Tables
–basis for ____________________________
•·Laws confirm ____________________________ to protection of the ________
•·Citizenship limited to ____________________________
•·Twelve Tables are hung in the ____________
Government Under the Republic
•·Rome elects two consuls—one to ______________, one to ______________
•·Senate—chosen from Roman ______________; makes foreign, domestic policy
•·Democratic assemblies elect tribunes, make ____________________________people
•·Dictators are leaders ______________ briefly in ____________________________
The Roman Army
•·Roman legion—military unit of __________ infantry; supported by ____________
•·Army is powerful; key factor in ____________________________
Rome Conquers Italy
•·Romans defeat ______________ in north and Greek ______________ in south
•·By 265 B.C., Rome controls Italian peninsula
•·Conquered peoples ________________________; this enables Rome to __________
Rome’s Commercial Network
•·Rome establishes large ____________________________
•·Access to ____________________________ provides many trade routes
•·____________, powerful city-state in North Africa, soon rivals Rome
Punic Wars
•·Rome and Carthage begin Punic Wars—______________ between 264–146 B.C.
•·Rome defeats Carthage, wins Sicily, in _______ 23-year war
•·______________—Carthaginian general—avenges defeat in ______________
•·Attacks Italy through Spain and France, doesn’t take Rome
Rome Triumphs
•·Roman general ______________ defeats ______________ in 202 B.C.
•·Rome destroys Carthage (_______________________ & _______________________), enslaves people in last war (149–146 B.C.)
Economic Turmoil
•·Gap between _______and_______ widens as Roman Republic grows
•·Farmers, former soldiers, lose to large estates; become homeless
•·Two tribunes, Tiberius and Gaius, try to help ________, are _____________
•·Civil war—conflict between groups ____________________________
Military Upheaval
•·Military becomes less ______________ and ______________
•·Soldiers recruited from poor; show loyalty only to __________________
Julius Caesar Takes Control
•Military leader Julius Caesar elected _________ 59 B.C.
•·Caesar, Crassus, Pompey form a __________________
–a group of __________________
•·Military victories give Caesar increasing ____________ and _________
•·Pompey fears Caesar’s __________________ and _________ ____
•·Caesar defeats Pompey’s armies in ____________________________________
•·Caesar is named ___________________________ in 44 B.C.E
Caesar’s Reforms
•·Caesar makes reforms: grants __________________, creates jobs _________________
•·Group of senators opposes Caesar; kills him on _________ ___. ______B.C.
Beginning of the Empire
•43 B.C., Caesar’s supporters __________________; become _____________________
•_________, _________, _________alliance ends in jealousy, violence
•In 31 B.C, ______________ and _____________ forces are defeated at Actium
•Octavian accepts title of __________________, “exalted one,” and rules Rome
Peace and Prosperity
–_____ _____________
–·Under Augustus, Rome moves from a _________ to an _________
–·Power no longer resides with citizens, but __________________a single ruler
–·200 years of _________ and _________ known as Pax Romana
A Sound Government
•·Augustus, Rome’s __________________, creates lasting system of __________________
–··glorifies Rome with beautiful __________________
–··sets up a __________________ to administer the empire
Agriculture and Trade
•·Agriculture __________________industry in empire; ______% of Romans ________
•·Common _________, denarius, makes trade within empire _________
•·Rome has vast __________________, includes China and India
•·Network of Roman _________ links empire to Persia, Russia
Slaves and Captivity
•·Slavery is a _________ part of Roman life in both _________ and _________
•·Some slaves become __________________; forced to fight to _________
Gods and Goddesses
•·Early Romans honor guardian _________ and _________ Jupiter, Juno, Minerva
•·Worship of _________ becomes part of official religion of Rome
Society and Culture
•·Rich live _________; most people are _________, receive grain from government
•·150 holidays and Colosseum events created to ___________________________
The Rise of Christianity
•Romans Conquer _________
–·Rome conquers Judea, home of Jews; makes it part of empire, A.D. 6
–·Many Jews believe a Messiah, or savior, eventually will free them
•Jesus of Nazareth
–·Jesus—a Jew born in __________________ (around 6 to 4 B.C.), raised in Nazareth
–·At age 30 begins preaching monotheism, Ten Commandments
–·Does good works, reportedly ___________________________
–·Stresses personal relationship with God, love for friends and enemies
A Growing Movement
•·Apostles
–the twelve men who are _________ _______(or pupils) of Jesus
–Jesus ignores _________ and _________; his message appeals to poor
•Jesus’ Death
–·Many Jews view Jesus as the _________; others see him as a _________
–·Roman governor _________ _________ sentences Jesus to be crucified
–·Apostles believe Jesus ascended into heaven after death
–·Christos, Greek word for “savior”; Christianity derived from “_________”
Growth of Christianity
•Followers spread Christianity—new religion based on __________________
•Paul’s Mission
–·Apostle Paul—spends life _________ and _________ Christianity
–·Common languages of _________ and _________ help to spread message
–·Paul stresses Jesus is son of _________who died for __________________
– ·Paul declares that Christianity open to all converts
Jewish Rebellion
•Jews rebel against _________; Romans storm Jerusalem, destroy _________
•Rebellions in A.D. 66, 70, 132 fail; Jews driven from _____________
•Diaspora—centuries of Jewish exile (from Greek word for “dispersal”)
Persecution of the Christians
•·Christians won’t worship __________________; become enemies of Roman rule
•·Roman rulers use _________ as scapegoats for ________________
•·As Pax Romana crumbles, Christians_________ _________, _________, in arena
Christianity’s Expansion
•·Christianity becomes __________________; reasons for widespread appeal:
–embraces __________________
–gives hope to the _________
–appeals to those repelled by ________________ of Roman life
–offers personal relationship with a ________________
–promises eternal ________________ after ________________
Constantine Accepts Christianity
•·Constantine—Roman ________________ battles for control of Rome in A.D. 312
•·Has vision of _____________, Christian symbol; places on soldiers’ shields
•·Believes ________________ helped him win; ________________ Christianity
•·In A.D. 380 Emperor ________________ makes Christianity religion of empire
Early Christian Church
•·Priests direct a single ____________; _____________ supervise numerous churches
•·Apostle Peter—first _________of _______ clergy trace their authority to him
•·Pope—the ________, or ______, of Christian Church; Rome, center of Church
Church Characteristics
•A Single ________________
•·Church leaders compile standard Christian beliefs in ________________________________
•·New Testament added to Hebrew Bible (also called Old Testament)
The Fathers of the Church
•·Early writers and scholars of teachings called ____________ of the Church
•·________________, bishop in North Africa, one of the most important Fathers
•·Stressed receiving ________________ to obtain God’s grace
•·Wrote famous book, The City of God
Fall of the Roman Empire
•The Empire Declines
•·Pax Romana ends in A.D. 180 with death of emperor ________________________________
•·Subsequent emperors unable to govern ___________________________
Rome’s Economy Weakens
•·Hostile tribes outside the empire ________________
•·Inflation—drop in value of ____________and rise in ____________—weakens trade
•·Overworked soil, war-torn farmland leads to ________________
Military and Political Turmoil
•·By third century A.D. Roman military in turmoil
•·Soldiers loyal to ________________, not Rome; commanders fighting for ________________
•·Government enlists mercenaries—foreign soldiers they ________________
•·Average citizens ________________ in the affairs of Rome
Diocletian Reforms the Empire
•·In A.D. 284 Emperor Diocletian restores order, ________________empire in _______
•·Two emperors in ________-________ East, _________-_______ West
•·In A.D. 305 Diocletian retires, rivals compete for power
Constantine Moves the Capital
•·Constantine becomes emperor of ________________ in A.D. 312
•·Seizes Eastern Empire in A.D. 324; moves Roman capital to ________________
•·Byzantium eventually renamed ________________—city of Constantine
Germanic Invasions
•·Mongol nomads from Asia, ________________, invade northern borders of empire
•·Germanic tribes flee Huns, _______ Roman lands, _______ Rome A.D. 410
•Attila the Hun
•·Attila—unites the Huns in A.D. 444; ___________ 70 cities in East
•·Attacks Rome in 452; __________and ___________ prevents victory
The Fall of Rome
•·Last Roman emperor falls to Germans in ___________; end of ____________ Empire
•·East thrives for another thousand years (_______________________)
Rome and the Roots of Western Civilization
•A New Culture Emerges
•·Romans adopt aspects of Greek and Hellenistic culture
•·Results in _________________________, or classical civilization
Roman Fine Arts
•·Romans dev. ______________ sculptures to tell stories ·Artists skil in creating __________, painting frescoes
•·Pompeii—Roman town; ash from volcano eruption A.D. 79 ________________
Learning and Literature
•·Romans borrow from Greek philosophy and literature
•·Poet Virgil writes epic ________________ modeled after Homer’s Greek epics
•·Roman historian ________________ excels in writing factually accurate history
•·Annals and Histories provide comprehensive look at Roman life
The Latin Language
•·________________ was official language of Roman Catholic Church until 1900s
•·Develops into French, Spanish, Portuguese, Italian, Romanian
•·More than half the words in English stem from ________________
Master Builders
•Romans pioneer use of ________________; also used domes and ________________
•·Create ________________—structures to bring water into cities, towns
The Legacy of Rome
•Roman System of Law
•·Principles of Roman law form basis of ________________________________
•Rome’s Enduring Influence
•·By preserving and adding to Greek civilization, Rome strengthened_____________________________
Rome’s Geography
•·Site of Rome chosen for its ______________ and ______________
•·Located on Italian peninsula in center of ______________ Sea
•·Built on______________ hills on Tiber River
The First Romans
•·Latins, Greeks, and Etruscans compete for control of region
•·______________ found original settlement of Rome between 1000 and 500 B.C.
•·______________ native to northern Italy; influence Roman civilization
Early Rulers
•·Around 600 B.C., Etruscan kings begin to rule Rome
•·Kings build Rome’s ______________ and ______________
• ·Romans overthrow ______________ in 509 B.C.
•·Romans found a _____________—government in ____________________________
Patricians and Plebeians
•·Different groups struggle for power in early Roman Republic
•·Patricians—____________________________
•·Plebeians—artisans, merchants, and farmers; ______________, ______________
•·Tribunes—elected representatives ____________ plebeians’ political ______________
Twelve Tables
•·In 451 B.C. officials carve Roman laws on twelve ______________
•·Called Twelve Tables
–basis for ____________________________
•·Laws confirm ____________________________ to protection of the ________
•·Citizenship limited to ____________________________
•·Twelve Tables are hung in the ____________
Government Under the Republic
•·Rome elects two consuls—one to ______________, one to ______________
•·Senate—chosen from Roman ______________; makes foreign, domestic policy
•·Democratic assemblies elect tribunes, make ____________________________people
•·Dictators are leaders ______________ briefly in ____________________________
The Roman Army
•·Roman legion—military unit of __________ infantry; supported by ____________
•·Army is powerful; key factor in ____________________________
Rome Conquers Italy
•·Romans defeat ______________ in north and Greek ______________ in south
•·By 265 B.C., Rome controls Italian peninsula
•·Conquered peoples ________________________; this enables Rome to __________
Rome’s Commercial Network
•·Rome establishes large ____________________________
•·Access to ____________________________ provides many trade routes
•·____________, powerful city-state in North Africa, soon rivals Rome
Punic Wars
•·Rome and Carthage begin Punic Wars—______________ between 264–146 B.C.
•·Rome defeats Carthage, wins Sicily, in _______ 23-year war
•·______________—Carthaginian general—avenges defeat in ______________
•·Attacks Italy through Spain and France, doesn’t take Rome
Rome Triumphs
•·Roman general ______________ defeats ______________ in 202 B.C.
•·Rome destroys Carthage (_______________________ & _______________________), enslaves people in last war (149–146 B.C.)
Economic Turmoil
•·Gap between _______and_______ widens as Roman Republic grows
•·Farmers, former soldiers, lose to large estates; become homeless
•·Two tribunes, Tiberius and Gaius, try to help ________, are _____________
•·Civil war—conflict between groups ____________________________
Military Upheaval
•·Military becomes less ______________ and ______________
•·Soldiers recruited from poor; show loyalty only to __________________
Julius Caesar Takes Control
•Military leader Julius Caesar elected _________ 59 B.C.
•·Caesar, Crassus, Pompey form a __________________
–a group of __________________
•·Military victories give Caesar increasing ____________ and _________
•·Pompey fears Caesar’s __________________ and _________ ____
•·Caesar defeats Pompey’s armies in ____________________________________
•·Caesar is named ___________________________ in 44 B.C.E
Caesar’s Reforms
•·Caesar makes reforms: grants __________________, creates jobs _________________
•·Group of senators opposes Caesar; kills him on _________ ___. ______B.C.
Beginning of the Empire
•43 B.C., Caesar’s supporters __________________; become _____________________
•_________, _________, _________alliance ends in jealousy, violence
•In 31 B.C, ______________ and _____________ forces are defeated at Actium
•Octavian accepts title of __________________, “exalted one,” and rules Rome
Peace and Prosperity
–_____ _____________
–·Under Augustus, Rome moves from a _________ to an _________
–·Power no longer resides with citizens, but __________________a single ruler
–·200 years of _________ and _________ known as Pax Romana
A Sound Government
•·Augustus, Rome’s __________________, creates lasting system of __________________
–··glorifies Rome with beautiful __________________
–··sets up a __________________ to administer the empire
Agriculture and Trade
•·Agriculture __________________industry in empire; ______% of Romans ________
•·Common _________, denarius, makes trade within empire _________
•·Rome has vast __________________, includes China and India
•·Network of Roman _________ links empire to Persia, Russia
Slaves and Captivity
•·Slavery is a _________ part of Roman life in both _________ and _________
•·Some slaves become __________________; forced to fight to _________
Gods and Goddesses
•·Early Romans honor guardian _________ and _________ Jupiter, Juno, Minerva
•·Worship of _________ becomes part of official religion of Rome
Society and Culture
•·Rich live _________; most people are _________, receive grain from government
•·150 holidays and Colosseum events created to ___________________________
The Rise of Christianity
•Romans Conquer _________
–·Rome conquers Judea, home of Jews; makes it part of empire, A.D. 6
–·Many Jews believe a Messiah, or savior, eventually will free them
•Jesus of Nazareth
–·Jesus—a Jew born in __________________ (around 6 to 4 B.C.), raised in Nazareth
–·At age 30 begins preaching monotheism, Ten Commandments
–·Does good works, reportedly ___________________________
–·Stresses personal relationship with God, love for friends and enemies
A Growing Movement
•·Apostles
–the twelve men who are _________ _______(or pupils) of Jesus
–Jesus ignores _________ and _________; his message appeals to poor
•Jesus’ Death
–·Many Jews view Jesus as the _________; others see him as a _________
–·Roman governor _________ _________ sentences Jesus to be crucified
–·Apostles believe Jesus ascended into heaven after death
–·Christos, Greek word for “savior”; Christianity derived from “_________”
Growth of Christianity
•Followers spread Christianity—new religion based on __________________
•Paul’s Mission
–·Apostle Paul—spends life _________ and _________ Christianity
–·Common languages of _________ and _________ help to spread message
–·Paul stresses Jesus is son of _________who died for __________________
– ·Paul declares that Christianity open to all converts
Jewish Rebellion
•Jews rebel against _________; Romans storm Jerusalem, destroy _________
•Rebellions in A.D. 66, 70, 132 fail; Jews driven from _____________
•Diaspora—centuries of Jewish exile (from Greek word for “dispersal”)
Persecution of the Christians
•·Christians won’t worship __________________; become enemies of Roman rule
•·Roman rulers use _________ as scapegoats for ________________
•·As Pax Romana crumbles, Christians_________ _________, _________, in arena
Christianity’s Expansion
•·Christianity becomes __________________; reasons for widespread appeal:
–embraces __________________
–gives hope to the _________
–appeals to those repelled by ________________ of Roman life
–offers personal relationship with a ________________
–promises eternal ________________ after ________________
Constantine Accepts Christianity
•·Constantine—Roman ________________ battles for control of Rome in A.D. 312
•·Has vision of _____________, Christian symbol; places on soldiers’ shields
•·Believes ________________ helped him win; ________________ Christianity
•·In A.D. 380 Emperor ________________ makes Christianity religion of empire
Early Christian Church
•·Priests direct a single ____________; _____________ supervise numerous churches
•·Apostle Peter—first _________of _______ clergy trace their authority to him
•·Pope—the ________, or ______, of Christian Church; Rome, center of Church
Church Characteristics
•A Single ________________
•·Church leaders compile standard Christian beliefs in ________________________________
•·New Testament added to Hebrew Bible (also called Old Testament)
The Fathers of the Church
•·Early writers and scholars of teachings called ____________ of the Church
•·________________, bishop in North Africa, one of the most important Fathers
•·Stressed receiving ________________ to obtain God’s grace
•·Wrote famous book, The City of God
Fall of the Roman Empire
•The Empire Declines
•·Pax Romana ends in A.D. 180 with death of emperor ________________________________
•·Subsequent emperors unable to govern ___________________________
Rome’s Economy Weakens
•·Hostile tribes outside the empire ________________
•·Inflation—drop in value of ____________and rise in ____________—weakens trade
•·Overworked soil, war-torn farmland leads to ________________
Military and Political Turmoil
•·By third century A.D. Roman military in turmoil
•·Soldiers loyal to ________________, not Rome; commanders fighting for ________________
•·Government enlists mercenaries—foreign soldiers they ________________
•·Average citizens ________________ in the affairs of Rome
Diocletian Reforms the Empire
•·In A.D. 284 Emperor Diocletian restores order, ________________empire in _______
•·Two emperors in ________-________ East, _________-_______ West
•·In A.D. 305 Diocletian retires, rivals compete for power
Constantine Moves the Capital
•·Constantine becomes emperor of ________________ in A.D. 312
•·Seizes Eastern Empire in A.D. 324; moves Roman capital to ________________
•·Byzantium eventually renamed ________________—city of Constantine
Germanic Invasions
•·Mongol nomads from Asia, ________________, invade northern borders of empire
•·Germanic tribes flee Huns, _______ Roman lands, _______ Rome A.D. 410
•Attila the Hun
•·Attila—unites the Huns in A.D. 444; ___________ 70 cities in East
•·Attacks Rome in 452; __________and ___________ prevents victory
The Fall of Rome
•·Last Roman emperor falls to Germans in ___________; end of ____________ Empire
•·East thrives for another thousand years (_______________________)
Rome and the Roots of Western Civilization
•A New Culture Emerges
•·Romans adopt aspects of Greek and Hellenistic culture
•·Results in _________________________, or classical civilization
Roman Fine Arts
•·Romans dev. ______________ sculptures to tell stories ·Artists skil in creating __________, painting frescoes
•·Pompeii—Roman town; ash from volcano eruption A.D. 79 ________________
Learning and Literature
•·Romans borrow from Greek philosophy and literature
•·Poet Virgil writes epic ________________ modeled after Homer’s Greek epics
•·Roman historian ________________ excels in writing factually accurate history
•·Annals and Histories provide comprehensive look at Roman life
The Latin Language
•·________________ was official language of Roman Catholic Church until 1900s
•·Develops into French, Spanish, Portuguese, Italian, Romanian
•·More than half the words in English stem from ________________
Master Builders
•Romans pioneer use of ________________; also used domes and ________________
•·Create ________________—structures to bring water into cities, towns
The Legacy of Rome
•Roman System of Law
•·Principles of Roman law form basis of ________________________________
•Rome’s Enduring Influence
•·By preserving and adding to Greek civilization, Rome strengthened_____________________________
Honors World History Video T Chart Assignment
Print this off:
Name: __________
Class:___________
Brainy Barbarians -Roman “Innovations
Create a T chart using the following two groups:
Roman Innovations Barbarian Innovations
1. What innovations did the Romans take credit for that were actually a product of “Barbarian” efforts?
2. Why do you think people associate these innovations with the Romans?
3. How did the Romans define “barbarians?”
4. Is the term “barbarian” appropriate for the people labeled thusly?
Name: __________
Class:___________
Brainy Barbarians -Roman “Innovations
Create a T chart using the following two groups:
Roman Innovations Barbarian Innovations
1. What innovations did the Romans take credit for that were actually a product of “Barbarian” efforts?
2. Why do you think people associate these innovations with the Romans?
3. How did the Romans define “barbarians?”
4. Is the term “barbarian” appropriate for the people labeled thusly?
Monday, September 14, 2009
Ap Macro Notes Unit II part B
MACRO UNIT 2
Tear Down Approach
This approach will allow us to look at how much income people have for spending purposes.
Gross Domestic Product:
should show the well being of the economy. (everything that was produced)
Problem is that it includes depreciation. Is depreciation a real payment? No.
This means we must deduct it from GDP. This will give us a more realistic picture of the production available for consumption and additions to capital stock.
This give you Net Domestic Product:
You must replace the machinery. It shows the annual output that the economy (households, business, governments, and net exports might consume without impairing our capacity to produce next year.
How is this shown in the income approach? Take out consumption of fixed capital.
National Income: all income earned by American owned resources. To get this you must look at
1) Income earned by Americans outside of the United States (this must be added in to NDP)
2) Indirect business taxes. You must subtract these taxes because this goes to the government and the government is not a resource of production. In other words, they get the tax money without adding to production.
National Income (income earned) is what it costs society to obtain its output. (Its GDP)
Looking at the income approach NI is compensation to employees, rent, interest, proprietors income and corporate profits.
Personal Income: (income received) The income actually received by people.
We pay the following so we must subtract them out:
1) social security contributions
2) corporate income taxes
3) Undistributed corporate profits
You must also add back transfer payments (unemployment compensation, welfare, disability...)
This is income received but not currently earned. (Notice that is you have to add this back because it was not originally included in GDP)
Disposable Income (DI): personal income less personal taxes.
Personal Taxes: income taxes, property taxes and inheritance taxes
(Personal Income - Personal Taxes = Disposable Income
You can then use your disposable income to either save or consume.
Macro Unit 2 Lesson 4
Prices are important because that is how we measure GDP.
Price Index: measures the combined price of a particular collection of goods and services, called a market basket, in a given period relative to the combined price of an identical or similar group of goods and services in a reference period (base year).
PI = price of market basket in a given year X 100
price of same basket in the base year
* Notice that in the base year the index will always be 100
Consumer Price Index: Best known indicator. It measures the prices of a fixed market basket of around 300 Goods and services. Measures the prices of goods and services purchased by wage earners.
Producer Price Index: measures the price level of goods and services that firms purchase from other firms.
GDP Deflator: reflects the price of goods and services but not the quantities. In other words, it will show how much prices have changed without worrying about changes in quantity.
GDP deflator = Nominal GDP/Real GDP x 100
Example: if Nominal GDP is $600 and Real GDP is $350 you get
600/350 x 100 = 171 that means prices have increased 71 percent.
When you look at GDP it is important to realize that inflation may have occurred. Does the increase in GDP arise because of an increase in Q or an increase in prices. To find out you want to adjust it for inflation.
The GDP can be adjusted for inflation or recession. In so doing we find the real GDP (adjusted) as opposed to the nominal GDP (unadjusted).
Nominal GDP = real GDP
price index
This gives us the value of total output in various years as if the prices of the products had been constant from the reference or base year throughout all the years being considered.
Inflation:
Inflation: a rising general level of prices. (The opposite would be deflation.)
Inflation makes the money in your pocket worth less. If you are on a fixed salary it also makes your salary worth less because you can buy less and less with each pay check.
The amount of real goods and services that a dollar can buy is called purchasing power. Purchasing power does not vary directly with inflation.
Nominal value of dollar is the actual value. The real value is what it can buy. If I give you a dollar today and you save it until next year its real value will be less than its nominal value.
Anticipated Inflation: inflation rate that we believe will occur
Unanticipated Inflation: inflation rate that comes at a surprise.
Unanticipated Inflation hurts those that lend money (fixed rate loan is getting paid back with inflated money that buys less.
Lenders lend money make money. They must take inflation into account. If unanticipated inflation occurs they are hurt because the interest rate they charged was not large enough.
Nominal rate of interest: rate expressed in today's dollars.
Real rate of interest: nominal rate of interest minus the anticipated rate of inflation.
Inflation causes interest rates to rise.
COLA: Cost of living adjustment: an automatic increase in income when inflation rate increases.
Stock dividends generally rise with inflation.
Inflation is measured through the price indexes. Ex. CPI, PPI
Rate of inflation is determined by subtracting last years price index (2007) from this years price index (2008) and dividing that by last years index (2007). This must all then be multiplied by 100.
Price index (2008) - Price index (2007) x 100 = Rate of Inflation
Price index (2007)
Rule of 70: a method for determining how long it will take the price level to double, given the current price level. To calculate this you divide the % annual rate of increase into 70.
Demand Pull Inflation: "too much money chasing too few goods" The economy demands more than it can produce (production possibilities curve) and this drives the prices up.
Cost-Push or Supply-Side Inflation: If the per unit cost of production increases then producers will be willing to supply less goods and services at various prices. This will drive the price up. This could result from rising wages or rising costs of materials (ex. rising oil prices).
Unit 2 Lesson 5
Peak: business activity has reached a temporary maximum.
recession: period of decline in total output, income, employment, and trade, lasting six months or longer.
depression: severe and prolonged recession
trough: recession or depression is at its lowest level
recovery: output and employment expand toward full employment
Unemployment:
Frictional Unemployment: This takes into account those workers that are between jobs. They are either searching for jobs or waiting to take jobs in the future.
Structural Unemployment: change in the demand for labor over time leads some people to become unemployed because their job is no longer needed. (ex: computers are taking the jobs of some people. ) This also includes shifts in geography. (ex: companies move their headquarters.
Cyclical Unemployment: unemployment caused by the recession phase of the business cycle.
Natural Rate of Unemployment: frictional and structural unemployment.
Full employment is achieved when the number of workers seeking jobs is satisfied by the number of jobs available. (Someone may be unemployed because the jobs that are open are not to their liking.) FULL EMPLOYMENT IS NOT 0. THEIR IS ALWAYS PEOPLE LOOKING FOR JOBS.
To find the unemployment rate you must not even consider those people under 16, those people institutionalized and those people not in the labor force (work in the home, in school, retired, have no desire to work...)
Problems with unemployment rate:
1) Part time workers are considered employed. (even if they are looking for a full time job.)
2) Discourage workers (those not actively seeking employment because they have given up.) are not counted because they are not actively seeking employment.
3) Workers employed in cash jobs will report themselves as unemployed. They may however just be employed in the underground economy.
GDP Gap: amount by which actual GDP falls short of potential GDP because of unemployment.
Tear Down Approach
This approach will allow us to look at how much income people have for spending purposes.
Gross Domestic Product:
should show the well being of the economy. (everything that was produced)
Problem is that it includes depreciation. Is depreciation a real payment? No.
This means we must deduct it from GDP. This will give us a more realistic picture of the production available for consumption and additions to capital stock.
This give you Net Domestic Product:
You must replace the machinery. It shows the annual output that the economy (households, business, governments, and net exports might consume without impairing our capacity to produce next year.
How is this shown in the income approach? Take out consumption of fixed capital.
National Income: all income earned by American owned resources. To get this you must look at
1) Income earned by Americans outside of the United States (this must be added in to NDP)
2) Indirect business taxes. You must subtract these taxes because this goes to the government and the government is not a resource of production. In other words, they get the tax money without adding to production.
National Income (income earned) is what it costs society to obtain its output. (Its GDP)
Looking at the income approach NI is compensation to employees, rent, interest, proprietors income and corporate profits.
Personal Income: (income received) The income actually received by people.
We pay the following so we must subtract them out:
1) social security contributions
2) corporate income taxes
3) Undistributed corporate profits
You must also add back transfer payments (unemployment compensation, welfare, disability...)
This is income received but not currently earned. (Notice that is you have to add this back because it was not originally included in GDP)
Disposable Income (DI): personal income less personal taxes.
Personal Taxes: income taxes, property taxes and inheritance taxes
(Personal Income - Personal Taxes = Disposable Income
You can then use your disposable income to either save or consume.
Macro Unit 2 Lesson 4
Prices are important because that is how we measure GDP.
Price Index: measures the combined price of a particular collection of goods and services, called a market basket, in a given period relative to the combined price of an identical or similar group of goods and services in a reference period (base year).
PI = price of market basket in a given year X 100
price of same basket in the base year
* Notice that in the base year the index will always be 100
Consumer Price Index: Best known indicator. It measures the prices of a fixed market basket of around 300 Goods and services. Measures the prices of goods and services purchased by wage earners.
Producer Price Index: measures the price level of goods and services that firms purchase from other firms.
GDP Deflator: reflects the price of goods and services but not the quantities. In other words, it will show how much prices have changed without worrying about changes in quantity.
GDP deflator = Nominal GDP/Real GDP x 100
Example: if Nominal GDP is $600 and Real GDP is $350 you get
600/350 x 100 = 171 that means prices have increased 71 percent.
When you look at GDP it is important to realize that inflation may have occurred. Does the increase in GDP arise because of an increase in Q or an increase in prices. To find out you want to adjust it for inflation.
The GDP can be adjusted for inflation or recession. In so doing we find the real GDP (adjusted) as opposed to the nominal GDP (unadjusted).
Nominal GDP = real GDP
price index
This gives us the value of total output in various years as if the prices of the products had been constant from the reference or base year throughout all the years being considered.
Inflation:
Inflation: a rising general level of prices. (The opposite would be deflation.)
Inflation makes the money in your pocket worth less. If you are on a fixed salary it also makes your salary worth less because you can buy less and less with each pay check.
The amount of real goods and services that a dollar can buy is called purchasing power. Purchasing power does not vary directly with inflation.
Nominal value of dollar is the actual value. The real value is what it can buy. If I give you a dollar today and you save it until next year its real value will be less than its nominal value.
Anticipated Inflation: inflation rate that we believe will occur
Unanticipated Inflation: inflation rate that comes at a surprise.
Unanticipated Inflation hurts those that lend money (fixed rate loan is getting paid back with inflated money that buys less.
Lenders lend money make money. They must take inflation into account. If unanticipated inflation occurs they are hurt because the interest rate they charged was not large enough.
Nominal rate of interest: rate expressed in today's dollars.
Real rate of interest: nominal rate of interest minus the anticipated rate of inflation.
Inflation causes interest rates to rise.
COLA: Cost of living adjustment: an automatic increase in income when inflation rate increases.
Stock dividends generally rise with inflation.
Inflation is measured through the price indexes. Ex. CPI, PPI
Rate of inflation is determined by subtracting last years price index (2007) from this years price index (2008) and dividing that by last years index (2007). This must all then be multiplied by 100.
Price index (2008) - Price index (2007) x 100 = Rate of Inflation
Price index (2007)
Rule of 70: a method for determining how long it will take the price level to double, given the current price level. To calculate this you divide the % annual rate of increase into 70.
Demand Pull Inflation: "too much money chasing too few goods" The economy demands more than it can produce (production possibilities curve) and this drives the prices up.
Cost-Push or Supply-Side Inflation: If the per unit cost of production increases then producers will be willing to supply less goods and services at various prices. This will drive the price up. This could result from rising wages or rising costs of materials (ex. rising oil prices).
Unit 2 Lesson 5
Peak: business activity has reached a temporary maximum.
recession: period of decline in total output, income, employment, and trade, lasting six months or longer.
depression: severe and prolonged recession
trough: recession or depression is at its lowest level
recovery: output and employment expand toward full employment
Unemployment:
Frictional Unemployment: This takes into account those workers that are between jobs. They are either searching for jobs or waiting to take jobs in the future.
Structural Unemployment: change in the demand for labor over time leads some people to become unemployed because their job is no longer needed. (ex: computers are taking the jobs of some people. ) This also includes shifts in geography. (ex: companies move their headquarters.
Cyclical Unemployment: unemployment caused by the recession phase of the business cycle.
Natural Rate of Unemployment: frictional and structural unemployment.
Full employment is achieved when the number of workers seeking jobs is satisfied by the number of jobs available. (Someone may be unemployed because the jobs that are open are not to their liking.) FULL EMPLOYMENT IS NOT 0. THEIR IS ALWAYS PEOPLE LOOKING FOR JOBS.
To find the unemployment rate you must not even consider those people under 16, those people institutionalized and those people not in the labor force (work in the home, in school, retired, have no desire to work...)
Problems with unemployment rate:
1) Part time workers are considered employed. (even if they are looking for a full time job.)
2) Discourage workers (those not actively seeking employment because they have given up.) are not counted because they are not actively seeking employment.
3) Workers employed in cash jobs will report themselves as unemployed. They may however just be employed in the underground economy.
GDP Gap: amount by which actual GDP falls short of potential GDP because of unemployment.
Thursday, September 10, 2009
Honors Economics Unit II Part B
•Gross domestic product (GDP) is the most commonly used NIPA—it calculates the total dollar value of all final goods & services produced within a country in a year
–Calculates total production, or output
•Final output
–To avoid counting products more than once, economists include only the value of final goods & services when calculating GDP
•Example: Table is final product of
–Woodcutter (cuts down tree)
–Sawmill (processes tree into lumber)
–Furniture manufacturer (makes table)
•Tree & lumber are intermediate products—goods & services used to make other products
–Intermediate product value is built into cost of table
•Current year
–Does not include products such as used cars or secondhand clothing
–GDP is a gauge of production—not sales
•Output produced within national borders
–Does not include products produced by U.S. companies in factories outside the U.S.
–Does include output of foreign workers & firms within the U.S.
•Example: Japanese-owned Nissan factory in Tennessee
•How is GDP determined?
–Economists add the output produced by
•Personal consumption expenditures (C)
•Gross investment (I)
•Government purchases of goods & services (G)
•Net exports of goods & services, or exports minus imports (X - M)
by using the output-expenditure model
•C + I + G + (X – M) = GDP
•C+I+G+NX=GDP
•Personal consumption expenditures
–Consumer purchases
•Durable goods
–Have a useful lifetime of more than a year, such as cars & computers
•Nondurable goods
–Have a short useful lifetime, such as groceries & cosmetics
•Services
–Such as medical care, entertainment & public education
–Fastest growing area of consumer expenditures
•Gross Investment
–True investment is the use of money to produce new capital goods
–Gross investment is the total value of all capital goods produced in a given nation during one year
•Includes changes in the dollar value of business inventories
•Does not include the purchase of financial assets—such as stocks, bonds, and land that do not result in the production of new goods or services
•Gross Investment
–2 subcategories
•Fixed investment
–Spending on residential structures, nonresidential structures such as office space & factories, & capital goods such as new machinery & office equipment
•Inventory investment
–Refers to the increase or decrease in the total dollar amount of the stock of raw materials, intermediate goods, and final goods of domestic businesses during a given period
•Government purchases
–Total dollar value that federal, state, & local governments spend on goods & services such as
•Highways
•Public education
•National defense
–Transfer payments, such as Social Security payments & government aid, expenditures for which the government receives no goods or services in exchange, are not included
•Net exports
–Total U.S. exports minus total U.S. imports
•Includes the value of goods & services produced domestically but sold in other countries (exports) & does not include goods & services produced in other countries but purchased locally (imports)
•As some goods & services included in GDP are produced in other countries, and some items produced in U.S. are sold in other countries & fail to get included in the other components of GDP, economists subtract total imports from total exports
•What if a product’s price increases during the year or into the next year?
–Nominal GDP, or current GDP, is GDP expressed in the current prices of the period being measured
–Real GDP is GDP adjusted for price changes (inflation)
•Calculating Real GDP helps economists to determine if production increased or decreased
–A price index is a set of statistics that allows economists to compare prices over time
•Accuracy & timeliness of data
–Economists use sampling techniques to determine prices & quantities
–Gathering data is slow & time-consuming
–GDP & NIPAs are only approximations of total output & income
•Nonmarket activities
–GDP does not measure exchanges of goods & services that are not market transactions (some output does not get paid for, or may begin payment for additional goods/services midway through year)
•Underground activity
–Underground activity is illegal activities & unreported legal activities (although it is illegal not to report it)
•“Goods” & “Bads”
–The value of many things that make for a better society are often not accounted for, while things that make a society worse, are
–GDP is an imperfect reporter of economic well-being
•Example: Car emissions standards & regulations that prohibit development in ecologically sensitive areas reduce GDP but improve the nation’s well-being
•Some economists propose assigning positive values to “goods” such as leisure & urban renewal, and negative dollar values to “bads” such as pollution & traffic congestion
•Gross national product
–Stopped being used in 1991
–GNP measures the total dollar value of all final output products with factors of production owned by residents of a country during one year
•Example: If production in Russia involves any capital owned by U.S. residents, it would be counted as part of the U.S. GNP
•GDP more accurately represents short-term resource use changes in the economy
–GDP used by the United Nations & most other countries—so the Commerce Department switched to GDP
•Net national product
–As GNP includes money invested in capital goods, it also includes money spent on replacing outdated or defective equipment
–When this depreciation is subtracted from GNP, the result is a nation’s net national product
•National income
–The sum of employees’ & proprietors’ income, real & estimated rental income, corporate profits, & net interest
–Economists subtract subsidies & indirect taxes from net national product
•Personal income
–To determine the amount of income people in a nation earn, economists will subtract income not given to people, such as profits that firms keep & reinvest & money spent on corporate income taxes & employee’s Social Security
–Economists then add money given from government transfer funds such as Social Security to determine income paid to individuals in a nation
•Disposable personal income
–Disposable income is the amount of money an individual has after deductions such as Social Security & income tax are taken out.
–Economists subtract personal taxes & nontax payments from personal income
•Personal taxes include:
–Income, estate, gift, property, and motor vehicle taxes
•Nontax payments include:
–Fines & passport fees
•Business cycles are changes in a market system’s economic activity
–These changes are measured in real GDP
–Durations of upswings or downswings can last for months or years
•Phases of the business cycle
–Expansion is a period of economic expansion & growth
•Example: occurred during WWII because of high levels of spending on military
–Peaks occur as the highest point of expansion—a time when the economy is the most prosperous
•Consumer demands calls for producers to increase plant capacity & hire more workers
•Phases of the business cycle
–Contraction, or recession, is the point at with businesses slowdown
–Recessions occur when there is a decline in real GDP for 2 or more consecutive quarters (6 months or more)
–Depressions are the next step, and are a prolonged & severe recession
•Example: Great Depression of 1930s
–Troughs are the final phase of the business cycle, at which businesses reach their lowest levels
•Troughs are usually followed by a period of economic recovery
•Business investment
–Businesses invest in capital goods to increase their production (Ex.: new machinery)
–High levels of business investment promote expansion
–Low levels of investment contribute to contractions
–Business investment creates:
•Demand for goods
•Efficiency as new capital promotes better production methods
•Stimulates technological change and higher output at lower production costs
•Money & credit
–Total output changes with the availability & affordability of credit
–Individuals & businesses tend to borrow when interest rates are low
•Public expectations
–Does the consumer believe the economy is heading toward a recession or expansion?—this will influence spending
–The same goes for business owners
•External factors
–Such as changes in the world’s economic or political climate
•Example: Increases in world oil prices in 1973-74 & 1979-80 contributed to recessions in 1974-75 & 1980-92
–Wars generally strengthen business activity in the U.S. as the government spends money on national defense
•Periods of expansion accompanied U.S. involvement in WWI, WWII, and both Korean & Vietnam Wars
•Leading indicators
–Leading indicators are used by economists that anticipate the direction the economy is headed
•Such as the number of building permits issued
•The number of orders of new capital & consumer goods
•The price of raw materials & stock prices
•Coincidental indicators
–Coincidental indicators are factors that change as the economy moves from one phase of the business cycle to another
–Tells economists is there is an upturn or downturn in economy
–Includes:
•Personal income
•Sales volume
•Industrial production levels
•Lagging indicators
–Lagging indicators are indicators that change monthly after an upturn or a downturn in the economy has begun
•Help economists predict the duration of an economic upturn or downturn
•Include:
–Use of consumer installment credit
–Number & size of business incomes
•As in the number of wins & losses a sports team has, the final outcome of more wins than losses is the most important factor, so is the final outcome—more ups than downs—for an economy
•If there are more ups than downs, an economy will experience growth
–Calculates total production, or output
•Final output
–To avoid counting products more than once, economists include only the value of final goods & services when calculating GDP
•Example: Table is final product of
–Woodcutter (cuts down tree)
–Sawmill (processes tree into lumber)
–Furniture manufacturer (makes table)
•Tree & lumber are intermediate products—goods & services used to make other products
–Intermediate product value is built into cost of table
•Current year
–Does not include products such as used cars or secondhand clothing
–GDP is a gauge of production—not sales
•Output produced within national borders
–Does not include products produced by U.S. companies in factories outside the U.S.
–Does include output of foreign workers & firms within the U.S.
•Example: Japanese-owned Nissan factory in Tennessee
•How is GDP determined?
–Economists add the output produced by
•Personal consumption expenditures (C)
•Gross investment (I)
•Government purchases of goods & services (G)
•Net exports of goods & services, or exports minus imports (X - M)
by using the output-expenditure model
•C + I + G + (X – M) = GDP
•C+I+G+NX=GDP
•Personal consumption expenditures
–Consumer purchases
•Durable goods
–Have a useful lifetime of more than a year, such as cars & computers
•Nondurable goods
–Have a short useful lifetime, such as groceries & cosmetics
•Services
–Such as medical care, entertainment & public education
–Fastest growing area of consumer expenditures
•Gross Investment
–True investment is the use of money to produce new capital goods
–Gross investment is the total value of all capital goods produced in a given nation during one year
•Includes changes in the dollar value of business inventories
•Does not include the purchase of financial assets—such as stocks, bonds, and land that do not result in the production of new goods or services
•Gross Investment
–2 subcategories
•Fixed investment
–Spending on residential structures, nonresidential structures such as office space & factories, & capital goods such as new machinery & office equipment
•Inventory investment
–Refers to the increase or decrease in the total dollar amount of the stock of raw materials, intermediate goods, and final goods of domestic businesses during a given period
•Government purchases
–Total dollar value that federal, state, & local governments spend on goods & services such as
•Highways
•Public education
•National defense
–Transfer payments, such as Social Security payments & government aid, expenditures for which the government receives no goods or services in exchange, are not included
•Net exports
–Total U.S. exports minus total U.S. imports
•Includes the value of goods & services produced domestically but sold in other countries (exports) & does not include goods & services produced in other countries but purchased locally (imports)
•As some goods & services included in GDP are produced in other countries, and some items produced in U.S. are sold in other countries & fail to get included in the other components of GDP, economists subtract total imports from total exports
•What if a product’s price increases during the year or into the next year?
–Nominal GDP, or current GDP, is GDP expressed in the current prices of the period being measured
–Real GDP is GDP adjusted for price changes (inflation)
•Calculating Real GDP helps economists to determine if production increased or decreased
–A price index is a set of statistics that allows economists to compare prices over time
•Accuracy & timeliness of data
–Economists use sampling techniques to determine prices & quantities
–Gathering data is slow & time-consuming
–GDP & NIPAs are only approximations of total output & income
•Nonmarket activities
–GDP does not measure exchanges of goods & services that are not market transactions (some output does not get paid for, or may begin payment for additional goods/services midway through year)
•Underground activity
–Underground activity is illegal activities & unreported legal activities (although it is illegal not to report it)
•“Goods” & “Bads”
–The value of many things that make for a better society are often not accounted for, while things that make a society worse, are
–GDP is an imperfect reporter of economic well-being
•Example: Car emissions standards & regulations that prohibit development in ecologically sensitive areas reduce GDP but improve the nation’s well-being
•Some economists propose assigning positive values to “goods” such as leisure & urban renewal, and negative dollar values to “bads” such as pollution & traffic congestion
•Gross national product
–Stopped being used in 1991
–GNP measures the total dollar value of all final output products with factors of production owned by residents of a country during one year
•Example: If production in Russia involves any capital owned by U.S. residents, it would be counted as part of the U.S. GNP
•GDP more accurately represents short-term resource use changes in the economy
–GDP used by the United Nations & most other countries—so the Commerce Department switched to GDP
•Net national product
–As GNP includes money invested in capital goods, it also includes money spent on replacing outdated or defective equipment
–When this depreciation is subtracted from GNP, the result is a nation’s net national product
•National income
–The sum of employees’ & proprietors’ income, real & estimated rental income, corporate profits, & net interest
–Economists subtract subsidies & indirect taxes from net national product
•Personal income
–To determine the amount of income people in a nation earn, economists will subtract income not given to people, such as profits that firms keep & reinvest & money spent on corporate income taxes & employee’s Social Security
–Economists then add money given from government transfer funds such as Social Security to determine income paid to individuals in a nation
•Disposable personal income
–Disposable income is the amount of money an individual has after deductions such as Social Security & income tax are taken out.
–Economists subtract personal taxes & nontax payments from personal income
•Personal taxes include:
–Income, estate, gift, property, and motor vehicle taxes
•Nontax payments include:
–Fines & passport fees
•Business cycles are changes in a market system’s economic activity
–These changes are measured in real GDP
–Durations of upswings or downswings can last for months or years
•Phases of the business cycle
–Expansion is a period of economic expansion & growth
•Example: occurred during WWII because of high levels of spending on military
–Peaks occur as the highest point of expansion—a time when the economy is the most prosperous
•Consumer demands calls for producers to increase plant capacity & hire more workers
•Phases of the business cycle
–Contraction, or recession, is the point at with businesses slowdown
–Recessions occur when there is a decline in real GDP for 2 or more consecutive quarters (6 months or more)
–Depressions are the next step, and are a prolonged & severe recession
•Example: Great Depression of 1930s
–Troughs are the final phase of the business cycle, at which businesses reach their lowest levels
•Troughs are usually followed by a period of economic recovery
•Business investment
–Businesses invest in capital goods to increase their production (Ex.: new machinery)
–High levels of business investment promote expansion
–Low levels of investment contribute to contractions
–Business investment creates:
•Demand for goods
•Efficiency as new capital promotes better production methods
•Stimulates technological change and higher output at lower production costs
•Money & credit
–Total output changes with the availability & affordability of credit
–Individuals & businesses tend to borrow when interest rates are low
•Public expectations
–Does the consumer believe the economy is heading toward a recession or expansion?—this will influence spending
–The same goes for business owners
•External factors
–Such as changes in the world’s economic or political climate
•Example: Increases in world oil prices in 1973-74 & 1979-80 contributed to recessions in 1974-75 & 1980-92
–Wars generally strengthen business activity in the U.S. as the government spends money on national defense
•Periods of expansion accompanied U.S. involvement in WWI, WWII, and both Korean & Vietnam Wars
•Leading indicators
–Leading indicators are used by economists that anticipate the direction the economy is headed
•Such as the number of building permits issued
•The number of orders of new capital & consumer goods
•The price of raw materials & stock prices
•Coincidental indicators
–Coincidental indicators are factors that change as the economy moves from one phase of the business cycle to another
–Tells economists is there is an upturn or downturn in economy
–Includes:
•Personal income
•Sales volume
•Industrial production levels
•Lagging indicators
–Lagging indicators are indicators that change monthly after an upturn or a downturn in the economy has begun
•Help economists predict the duration of an economic upturn or downturn
•Include:
–Use of consumer installment credit
–Number & size of business incomes
•As in the number of wins & losses a sports team has, the final outcome of more wins than losses is the most important factor, so is the final outcome—more ups than downs—for an economy
•If there are more ups than downs, an economy will experience growth
Honors World History Unit II Notes part B
The Macedonians
•Ancient kingdom in the northern-most part of ancient Greece (Dorian descent)
•Viewed as inferior by most Greek city-states
•Led by Philip II, conquered most Greek city-states by 338 BC
•Philip was assassinated in 336 BC
•Eldest son of Philip was Alexander, born to Olympias (nonMacedonian Greek princess—created controversy w/marriage to Cleopatra)
•Macedonian army elected Alexander as their new king
•City-states saw opportunity to rebel
•Put down quickly by Alexander
•Alexander turned his attention eastward toward Persian Empire
•Early victories against forces of Darius III
•Battle of Issus, Darius fled back toward Persia
•Alexander turned south to Egypt
•Egyptians, resentful of Persian rule, welcomed Alexander as a pharaoh
•Finally defeated Darius III at Battle of Gaugamela
•Darius killed by his own people, Alexander proclaimed Persian empire his own
•Pushed on to Indus River Valley
•Wanted to continue eastward, but his men refused
•Headed back to Babylon
•Alexander became ill and died, 323 BC
•Empire divided among Alexander’s generals
•Inept rulers, quick decline
•Revolts led to greater divisions
•No lasting political effects
Alexander’s Greatest Achievement
•Spread of Hellenistic Culture
•Greek culture superimposed upon and eventually mixing with regional cultures
•Created a form of “universal culture”
•Spread of Greek language
•Spread of Greek learning (science, math)
•Ancient kingdom in the northern-most part of ancient Greece (Dorian descent)
•Viewed as inferior by most Greek city-states
•Led by Philip II, conquered most Greek city-states by 338 BC
•Philip was assassinated in 336 BC
•Eldest son of Philip was Alexander, born to Olympias (nonMacedonian Greek princess—created controversy w/marriage to Cleopatra)
•Macedonian army elected Alexander as their new king
•City-states saw opportunity to rebel
•Put down quickly by Alexander
•Alexander turned his attention eastward toward Persian Empire
•Early victories against forces of Darius III
•Battle of Issus, Darius fled back toward Persia
•Alexander turned south to Egypt
•Egyptians, resentful of Persian rule, welcomed Alexander as a pharaoh
•Finally defeated Darius III at Battle of Gaugamela
•Darius killed by his own people, Alexander proclaimed Persian empire his own
•Pushed on to Indus River Valley
•Wanted to continue eastward, but his men refused
•Headed back to Babylon
•Alexander became ill and died, 323 BC
•Empire divided among Alexander’s generals
•Inept rulers, quick decline
•Revolts led to greater divisions
•No lasting political effects
Alexander’s Greatest Achievement
•Spread of Hellenistic Culture
•Greek culture superimposed upon and eventually mixing with regional cultures
•Created a form of “universal culture”
•Spread of Greek language
•Spread of Greek learning (science, math)
Wednesday, September 9, 2009
Honors World History
Mr. Robinson had to be away from school on Tuesday, so he has given each class an additional two days to complete their Greek movie projects. Make sure you have everything you need to present to the class on Thursday/Friday!
AP Macro and Honors Economics
Make SURE you have your book work classwork/homework completed when you arrive to class on Thursday/Friday. There will be a short pop quiz over the reading and book work. You may use your work on the quiz.
Friday, September 4, 2009
Honors World History Movie Project
300: The Movie Activity
A. Title of movie:
B. On what historic event is this movie based?
C. Main characters:
1. Character:
a) Actor:
b) Summary of character:
c) Why this actor?
_______________________________________________________________________
2. Character:
a) Actor:
b) Summary of character:
c) Why this actor?
_______________________________________________________________________
3. Character:
a) Actor:
b) Summary of character:
c) Why this actor?
________________________________________________________________________
Main plot of the movie (Basic Story):
Questions:
1. What will your movie be rated? Why?
2. What will be your target audience?
Formative Assessment:
On a sheet of notebook/printer paper, create a movie poster for your movie. Include the title, stars of the movie and a picture that relates what the movie is about.
A. Title of movie:
B. On what historic event is this movie based?
C. Main characters:
1. Character:
a) Actor:
b) Summary of character:
c) Why this actor?
_______________________________________________________________________
2. Character:
a) Actor:
b) Summary of character:
c) Why this actor?
_______________________________________________________________________
3. Character:
a) Actor:
b) Summary of character:
c) Why this actor?
________________________________________________________________________
Main plot of the movie (Basic Story):
Questions:
1. What will your movie be rated? Why?
2. What will be your target audience?
Formative Assessment:
On a sheet of notebook/printer paper, create a movie poster for your movie. Include the title, stars of the movie and a picture that relates what the movie is about.
Thursday, September 3, 2009
Honors World History Unit II notes Part A
Geography of Greece
• Mainland and about 2,000 islands
The Sea
• Big role in dev. of Greek Civ.
• Proximity, lack of resources encouraged sea travel/trade
The Land
• ·Mountainous, slow travel, divide land into regions
• small populations (lack of arable land)
Climate
• Moderate
• Creates “outdoorsmen” identity
Origins of Mycenaean Civilization
• ·Indo-Europeans who settled on mainland (2000 B.C.E.)
• Main City: Mycenae
• Led by warrior-kings (1600–1100 B.C.E.)
• Contact with Minoans
• ·After 1500 B.C., Myc. adopt Minoan sea trade & culture
• The Trojan War
• Fought by Myc. against city of Troy (1200s B.C.E)
• (Once thought to be fictional, archaeological evidence has been found)
• Dorians Replace Mycenaeans
• ·Mycenaean civilization collapses around 1200 B.C.
• Dorians—possibly relatives of Bronze Age Greeks—move into Greece
– Less advanced than Mycenaeans
– Dorians leave no written records (Dark Age of Greece)
• Oral tradition grows, especially epics of
• Homer—a blind storyteller
– Epic—a narrative poem about heroic deeds
– Iliad, about Trojan War, shows Greek heroic ideal
• Develop myths—traditional stories about gods
– Use myths to under mysteries of life
– Gods have human qualities (love, hate, jealousy, etc…)
– Zeus, ruler of Gods, lives on Mount Olympus with his wife, Hera
• ·Zeus’s daughter Athena: goddess of wisdom & guardian of cities
• The City-State
• By 750 B.C. the Greek city-state, or polis, is the formal government
– Polis - city & surrounding villages (50-500 sq. mi)
– Population – usu. less than 10,000
– Citizens gather in the marketplace & acropolis
• a fortified hilltop
• City-states have different forms of government
– Monarchy—rule by a king
– Aristocracy—rule by nobility
– Oligarchy—rule by small group of powerful merchants and artisans
– Tyranny - nobles and wealthy citizens w support of commoners
• They seize control and rule in the interests of ordinary people ATHENS
• 621 B.C., democracy—rule by the people—develops in Athens
– Draco develops legal code based on equality of citizens
– Solon abolishes debt slavery
– Cleisthenes has citizens make laws
• Only native-born, property-owning males are citizens
• Schooling only for sons of wealthy families
• Girls learn from mothers
Sparta
• Dominates Messenians (become helots)
– Helots—peasants forced to farm the land
• Harsh rule
• Strong state
Sparta’s Government and Society
• Three social classes:
• citizens, free noncitizens, helots—slaves
• Values:
• duty, strength, individuality, discipline over freedom
• Most powerful army in Greece
• Males
• move into barracks at age 7
• train until 30
• serve until 60
• Girls receive some military training (tough ladies)
• Girls also taught to value service to Sparta
• New Kind of Army
• Cheaper iron replaces bronze
• arms and armor cheaper
• Army includes soldiers from all classes
• Phalanx—formation of soldiers with spears, shields (induced fear)
• Battle at Marathon
• Between Greece and Persian Empire
• Persian army attacks Athens, is defeated at Marathon
– Pheidippides Brings News (runner) of Greek victory
• Thermopylae and Salamis (Greek “Victories”)
• 480 B.C., Persians invade Greece
• Many Greeks stay neutral or side with Persians
• Greeks hold Thermopylae for three days
• Salamis
• Athenians defeat Persians at sea,
• Victories force Persian retreat
• ·City-states form Delian League and continue to fight Persians (Sparta doesn’t join)
Consequences of Persian Wars
• New self-confidence due to victory
• Athens leads Delian League
– Athens uses force against opponents
– League essentially part of Athenian empire
• Rise of Athenian creativity
Democracy & the Greek Golden Age
• Pericles - skillful politician, well respected
• Stronger Democracy
• Pericles hires more public officials; creates direct democracy
– citizens rule directly, not through representatives
• Golden Age
• ·Pericles hires artisans to beautify Athens
• Architecture and Sculpture
• Parthenon—a large temple to honor goddess Athena
• Sculptors create graceful, strong, perfectly formed figures
• Classical art—values harmony, order, balance, proportion, beauty
• Tragedy and Comedy
• ·Greeks invent drama as an art form
– Two forms of drama: tragedy and comedy
• History
• ·Historians Herodotus and Thucydides
Peloponnesian Wars
• 431 B.C. city-states Sparta and Athens at war—
• Plague strikes Athens in 430 B.C.E.
– kills many—including Pericles
• Sparta (WINNER) & Athens truce (421 B.C.E)
• 415 B.C. Athens renews war
• Defeated AGAIN
– Athens and allies surrender to Sparta in 404 B.C.
• Mainland and about 2,000 islands
The Sea
• Big role in dev. of Greek Civ.
• Proximity, lack of resources encouraged sea travel/trade
The Land
• ·Mountainous, slow travel, divide land into regions
• small populations (lack of arable land)
Climate
• Moderate
• Creates “outdoorsmen” identity
Origins of Mycenaean Civilization
• ·Indo-Europeans who settled on mainland (2000 B.C.E.)
• Main City: Mycenae
• Led by warrior-kings (1600–1100 B.C.E.)
• Contact with Minoans
• ·After 1500 B.C., Myc. adopt Minoan sea trade & culture
• The Trojan War
• Fought by Myc. against city of Troy (1200s B.C.E)
• (Once thought to be fictional, archaeological evidence has been found)
• Dorians Replace Mycenaeans
• ·Mycenaean civilization collapses around 1200 B.C.
• Dorians—possibly relatives of Bronze Age Greeks—move into Greece
– Less advanced than Mycenaeans
– Dorians leave no written records (Dark Age of Greece)
• Oral tradition grows, especially epics of
• Homer—a blind storyteller
– Epic—a narrative poem about heroic deeds
– Iliad, about Trojan War, shows Greek heroic ideal
• Develop myths—traditional stories about gods
– Use myths to under mysteries of life
– Gods have human qualities (love, hate, jealousy, etc…)
– Zeus, ruler of Gods, lives on Mount Olympus with his wife, Hera
• ·Zeus’s daughter Athena: goddess of wisdom & guardian of cities
• The City-State
• By 750 B.C. the Greek city-state, or polis, is the formal government
– Polis - city & surrounding villages (50-500 sq. mi)
– Population – usu. less than 10,000
– Citizens gather in the marketplace & acropolis
• a fortified hilltop
• City-states have different forms of government
– Monarchy—rule by a king
– Aristocracy—rule by nobility
– Oligarchy—rule by small group of powerful merchants and artisans
– Tyranny - nobles and wealthy citizens w support of commoners
• They seize control and rule in the interests of ordinary people ATHENS
• 621 B.C., democracy—rule by the people—develops in Athens
– Draco develops legal code based on equality of citizens
– Solon abolishes debt slavery
– Cleisthenes has citizens make laws
• Only native-born, property-owning males are citizens
• Schooling only for sons of wealthy families
• Girls learn from mothers
Sparta
• Dominates Messenians (become helots)
– Helots—peasants forced to farm the land
• Harsh rule
• Strong state
Sparta’s Government and Society
• Three social classes:
• citizens, free noncitizens, helots—slaves
• Values:
• duty, strength, individuality, discipline over freedom
• Most powerful army in Greece
• Males
• move into barracks at age 7
• train until 30
• serve until 60
• Girls receive some military training (tough ladies)
• Girls also taught to value service to Sparta
• New Kind of Army
• Cheaper iron replaces bronze
• arms and armor cheaper
• Army includes soldiers from all classes
• Phalanx—formation of soldiers with spears, shields (induced fear)
• Battle at Marathon
• Between Greece and Persian Empire
• Persian army attacks Athens, is defeated at Marathon
– Pheidippides Brings News (runner) of Greek victory
• Thermopylae and Salamis (Greek “Victories”)
• 480 B.C., Persians invade Greece
• Many Greeks stay neutral or side with Persians
• Greeks hold Thermopylae for three days
• Salamis
• Athenians defeat Persians at sea,
• Victories force Persian retreat
• ·City-states form Delian League and continue to fight Persians (Sparta doesn’t join)
Consequences of Persian Wars
• New self-confidence due to victory
• Athens leads Delian League
– Athens uses force against opponents
– League essentially part of Athenian empire
• Rise of Athenian creativity
Democracy & the Greek Golden Age
• Pericles - skillful politician, well respected
• Stronger Democracy
• Pericles hires more public officials; creates direct democracy
– citizens rule directly, not through representatives
• Golden Age
• ·Pericles hires artisans to beautify Athens
• Architecture and Sculpture
• Parthenon—a large temple to honor goddess Athena
• Sculptors create graceful, strong, perfectly formed figures
• Classical art—values harmony, order, balance, proportion, beauty
• Tragedy and Comedy
• ·Greeks invent drama as an art form
– Two forms of drama: tragedy and comedy
• History
• ·Historians Herodotus and Thucydides
Peloponnesian Wars
• 431 B.C. city-states Sparta and Athens at war—
• Plague strikes Athens in 430 B.C.E.
– kills many—including Pericles
• Sparta (WINNER) & Athens truce (421 B.C.E)
• 415 B.C. Athens renews war
• Defeated AGAIN
– Athens and allies surrender to Sparta in 404 B.C.
Subscribe to:
Posts (Atom)
