Fiscal or Monetary Policy Activity action. incorrectly. incorrectly. direction. Shifts are 2012 FOMC accurately Statement drawn. Explain what Explanation is Many parts Generally Clear will happen as unintelligible are difficult to accurate, but evidence of or not present. critical a result of the clarify. Does could be thinking- policy to the not improved with application, price level, demonstrate more analysis analysis, synthesis, and employment, solid and creative evaluation. and real GDP. understanding thought. of the excerpt. Shows a good understanding 2012 FOMC of parts of the Statement excerpt. Identify fiscal Does not seem Shows a full understanding or monetary to understand of the policy. the excerpt concept. very well. Public Law 103-66 (1993) Identify Does not seem Shows a full understanding expansionary to understand of the or the excerpt concept. contractionary very well. policy. Public Law 103-66 (1993) Graphically Nothing is The graph is The graph is Axes and show the likely completed. somewhat mostly curves are impacts on the accurate. accurate. labelled ADAS Model Many parts Some parts correctly. as a result of are mislabeled are mislabeled Curves are in the policy or drawn or drawn the correct action. incorrectly. incorrectly. direction. Shifts are Public Law accurately 103-66 (1993) drawn. Explain what Explanation is Many parts Generally Clear unintelligible accurate, but evidence of will happen as or not present. are difficult to critical a result of the clarify. Does could be thinking- policy to the not improved with application, price level, demonstrate more analysis analysis, synthesis, and employment, solid and creative evaluation. and real GDP. understanding thought. of the excerpt. Shows a goodFiscal or Monetary Policy Activity 3. Excerpt from FOMC Statement Released December 12, 2012 "Information received since the Federal Open Market Committee met in October suggests that economic activity and employment have continued to expand at a moderate pace in recent months, apart from weather-related disruptions. Although the unemployment rate has declined somewhat since the summer, it remains elevated. Household spending has continued to advance, and the housing sector has shown further signs of improvement, but growth in business fixed investment has slowed. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable. To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgage- backed securities at a pace of $40 billion per month. The Committee also will purchase longer-term Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and, in January, will resume rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodation." LRAS Price Level SRAS PL1 AD Y1 Real GDP YFiscal or Monetary Policy Activity the excerpt concept. or contractionary very well. policy. Public Law 111-5 (2009) Graphically Nothing is The graph is The graph is Axes and show the likely completed. somewhat mostly curves are impacts on the accurate. accurate. labelled ADAS Model Many parts Some parts correctly. as a result of are mislabeled are mislabeled Curves are in the policy or drawn or drawn the correct action. incorrectly. incorrectly. direction. Shifts are Public Law accurately 111-5 (2009) drawn. Explain what Explanation is Many parts Generally Clear unintelligible are difficult to accurate, but evidence of will happen as or not present. critical a result of the clarify. Does could be thinking- policy to the not improved with application, price level, demonstrate more analysis analysis, synthesis, and employment, solid and creative evaluation. and real GDP. understanding thought. of the excerpt. Shows a good understanding Public Law of parts of the 111-5 (2009) excerpt. Identify fiscal Does not seem Shows a full understanding or monetary to understand of the policy. the excerpt concept. very well. 2012 FOMC Statement Identify Does not seem Shows a full understanding expansionary to understand of the or the excerpt concept. contractionary very well. policy. 2012 FOMC Statement Graphically Nothing is The graph is The graph is Axes and show the likely completed. somewhat mostly curves are impacts on the accurate. accurate. labelled ADAS Model Many parts Some parts correctly. as a result of are mislabeled are mislabeled Curves are in the policy or drawn or drawn the correctFiscal or Monetary Policy Activity 2. Excerpt from Public Law 111-5 of the 111th Congress: Signed into law by President Obama February 17, 2009 "Making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. TITLE XII-Transportation, Housing and Urban Development, and Related Agencies ..projects eligible for funding provided under this heading shall include, but not be limited to, highway or bridge projects eligible under title 23, United States Code, including interstate rehabilitation, improvements to the rural collector road system, the reconstruction of overpasses and interchanges, bridge replacements, seismic retrofit projects for bridges, and road realignments; public transportation projects eligible under chapter 53 of title 49... ... make improvements to power systems, air route traffic control centers, air traffic control towers, terminal radar approach control facilities, and navigation and landing equipment..." LRAS Price Level SRAS PL1 AD Real GDP Y1 YFiscal or Monetary Policy Activity Fiscal or Monetary Policy Activity Rubric Criteria Not Evident Developing Proficient Distinguished Weight Identify fiscal Does not seem Shows a full understanding or monetary to understand of the policy. the excerpt concept. very well. 1999 FOMC Statement Identify Does not seem Shows a full understanding expansionary to understand of the or the excerpt concept. contractionary very well. policy. 1999 FOMC Statement Graphically Nothing is The graph is The graph is Axes and show the likely completed. somewhat mostly curves are impacts on the accurate. accurate. labelled ADAS Model Many parts Some parts correctly. as a result of are mislabeled are mislabeled Curves are in the policy or drawn or drawn the correct action. incorrectly. incorrectly. direction. Shifts are 1999 FOMC accurately Statement drawn. Explain what Explanation is Many parts Generally Clear unintelligible are difficult to accurate, but evidence of will happen as or not present. critical a result of the clarify. Does could be thinking- policy to the not improved with application, price level, demonstrate more analysis analysis, synthesis, and employment, solid and creative evaluation. and real GDP. understanding thought. of the excerpt. Shows a good understanding 1999 FOMC of parts of the Statement excerpt. Identify fiscal Does not seem Shows a full understanding or monetary to understand of the policy. the excerpt concept. very well. Public Law 111-5 (2009) Identify Does not seem Shows a full 1 understanding expansionary to understand of theFiscal or Monetary Policy Activity Read the following excerpts. Identify whether the policy action is fiscal or monetary and expansionary or contractionary. Draw and label the change that would occur on the ADAS graph as a result of the policy action described in each. Identify what will happen as a result of the policy to the price level, employment, and real GDP. 1. Excerpt from FOMC Statement Released November 16, 1999 "The Federal Open Market Committee today voted to raise its target for the federal funds rate by 25 basis points to 5-1/2 percent. In a related action, the Board of Governors approved a 25 basis point increase in the discount rate to 5 percent. Although cost pressures appear generally contained, risks to sustainable growth persist. Despite tentative evidence of a slowing in certain interest-sensitive sectors of the economy and of accelerating productivity, the expansion of activity continues in excess of the economy's growth potential. As a consequence, the pool of available workers willing to take jobs has been drawn down further in recent months, a trend that must eventually be contained if inflationary imbalances are to remain in check and economic expansion continue." LRAS Price Level SRAS PL1 AD Y Real GDP Y1Fiscal or Monetary Policy Activity Public Law understanding 103-66 (1993) of parts of the excerpt. Identify fiscal Does not seem Shows a full understanding or monetary to understand of the policy. the excerpt concept. very well. 2021 FOMC Statement Identify Does not seem Shows a full understanding expansionary to understand of the or the excerpt concept. contractionary very well. policy. 2021 FOMC Statement Graphically Nothing is The graph is The graph is Axes and show the likely completed. somewhat mostly curves are impacts on the accurate. accurate. labelled ADAS Model Many parts Some parts correctly. as a result of are mislabeled are mislabeled Curves are in the policy or drawn or drawn the correct action. incorrectly. incorrectly. direction. Shifts are 2021 FOMC accurately Statement drawn. Explain what Explanation is Many parts Generally Clear will happen as unintelligible are difficult to accurate, but evidence of or not present. critical a result of the clarify. Does could be thinking policy to the not improved with application, price level, demonstrate more analysis analysis, synthesis, and employment, solid and creative evaluation. and real GDP. understanding thought. of the excerpt. Shows a good 2021 FOMC understanding Statement of parts of the excerpt. Total: 50Fiscal or Monetary Policy Activity 4. Excerpt from Public Law 103-66 of the 103rd Congress: Signed into law by President Clinton August 10, 1993 "To provide for reconciliation pursuant to section 7 of the concurrent resolution on the budget for fiscal year 1994. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled Title XIII: Revenue, Health Care, Human Resources, Income Security, Customs and Trade, Food Stamp Program, and Timber Sale Provisions ..Subchapter B: Revenue Increases - Increases the marginal tax rate for certain higher incomes. Imposes a surtax on certain higher incomes. Sec. 13203 Increases the tentative minimum tax for taxpayers other than corporations. Sec. 13204 Makes permanent the overall limitation on itemized deductions and the phaseout of personal exemptions for high-income taxpayers.." LRAS Price Level SRAS PL1 AD Real GDP Y Y1Fiscal or Monetary Policy Activity 5. Excerpt from FOMC Statement Released January 27, 2021 "The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals." LRAS Price Level SRAS PL1 AD Real GDP Y Y1