Economics

 
 
Georgia Department of Education 
Revised 08/01/2012 
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Page 3 of 10 
Copyright 2012 © All Rights Reserved
Macroeconomic Concepts 
SSEMA1 The student will illustrate the means by which economic activity is measured. 
a.
Explain that overall levels of income, employment, and prices are determined by the spending 
and production decisions of households, businesses, government, and net exports. 
b.
Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price 
Index (CPI), inflation, stagflation, and aggregate supply and aggregate demand. 
c.
Explain how economic growth, inflation, and unemployment are calculated. 
d.
Identify structural, cyclical, and frictional unemployment. 
e.
Define the stages of the business cycle; include peak, contraction, trough, recovery, expansion 
as well as recession and depression. 
f.
Describe the difference between the national debt and government deficits. 
 
SSEMA2 The student will explain the role and functions of the Federal Reserve System. 
a.
Describe the organization of the Federal Reserve System. 
b.
Define monetary policy. 
c.
Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, 
full employment, and economic growth. 
SSEMA3 The student will explain how the government uses fiscal policy to promote price 
stability, full employment, and economic growth. 
a.
Define fiscal policy. 
b.
Explain the government’s taxing and spending decisions. 
International Economics 
SSEIN1 The student will explain why individuals, businesses, and governments trade goods and 
services. 
a.
Define and distinguish between absolute advantage and comparative advantage. 
b.
Explain that most trade takes place because of comparative advantage in the production of a 
good or service. 
c.
Explain the difference between balance of trade and balance of payments.