12.E4 - Tools of Economic Policy in Global Economy

From EngageNY

THE TOOLS OF ECONOMIC POLICY IN A GLOBAL ECONOMY: Globalization and increased economic interdependence affect the United States economy significantly. The tools that the policy makers have available to address these issues are fiscal policy, monetary policy, and trade policy.

12.E4a
Policy makers establish economic goals related to economic indicators, including the Gross National Product (GNP), Gross Domestic Product (GDP), Consumer Price Index (CPI), employment and interest rates, and aggregate supply and demand.

12.E4b The president and Congress determine fiscal policy by establishing the level of spending and taxing in the annual budget. Some tax programs are designed to provide incentives to individuals and businesses that influence private sector spending, saving, and investment.

12.E4c The Federal Reserve is the government institution responsible for managing the nation’s monetary policy, including regulating the amount of money in circulation and interest rates.

12.E4d Trade policies and agreements (tariffs, quotas, embargoes) set the rules for trade between the United States and other nations. Agreeing on such rules is very difficult because each nation has different interests, and each nation has special interest groups trying to influence the negotiations.

Supporting Materials

DVD

Global Economic Issues

"Global Issues for Students" provides an in-depth analysis of current world problems. We have entered a new era of globalization - a level of interconnection unprecedented in world history. One of the most important results of this new wave of globalization is our heightened awareness of how the...

Web Resource

The Future of Water

From ancient civilizations to current day metropolitan cities, all societies have been shaped by the struggle to control water. The future of humankind will be shaped by the element of water and this struggle for control will establish the balance between peace and war, profoundly influencing...

Learn more on Engage NY

EngageNY.org is developed and maintained by the New York State Education Department (NYSED) to support the implementation of key aspects of the New York State Board of Regents Reform Agenda.

This is the official web site for current materials and resources related to the Regents Reform Agenda. The agenda includes the implementation of the New York State P-12 Common Core Learning Standards (CCLS), Teacher and Leader Effectiveness (TLE), and Data-Driven Instruction (DDI). EngageNY.org is dedicated to providing educators across New York State with real-time, professional learning tools and resources to support educators in reaching the State’s vision for a college and career ready education for all students.