Civics Core 100, Goal 9 The learner will analyze factors influencing the United States economy

Civics Core 100, Goal 9Civics Core 100, Goal 9

The learner will analyze The learner will analyze factors influencing the United factors influencing the United

States economy. States economy.

People and nations all over the world now People and nations all over the world now depend on one another for many goods depend on one another for many goods and servicesand servicesTRADETRADE

The economy grows over time through The economy grows over time through alternating intervals of growth and decline alternating intervals of growth and decline called the business cyclecalled the business cycle

European Union (EU):European Union (EU): org of independent org of independent European nationsEuropean nationsNorth American Free Trade Agreement North American Free Trade Agreement (NAFTA):(NAFTA): will eventually eliminate all will eventually eliminate all barriers to trade among US, Canada, and barriers to trade among US, Canada, and MexicoMexicoWorld Trade Organization (WTO):World Trade Organization (WTO): oversees trade among all nationsoversees trade among all nations

Free Trade:Free Trade: reduced barriers on trade reduced barriers on trade– To increase trade, countries join together with To increase trade, countries join together with

a few key trading partners to set up zones of a few key trading partners to set up zones of free tradefree trade

Protectionism:Protectionism: tariffs placed on imports; tariffs placed on imports; price of foreign goods goes up and makes price of foreign goods goes up and makes local prices more competitivelocal prices more competitive– to protect domestic productsto protect domestic products– Can lead to trade wars: set up even greater Can lead to trade wars: set up even greater

trade barrierstrade barriers

Changes in government spending of tax Changes in government spending of tax policiespoliciesImportant economic tool because of its Important economic tool because of its ability to affect the total amount of output ability to affect the total amount of output produced (Gross Domestic Product) produced (Gross Domestic Product)

Controlling of the supply of money and the Controlling of the supply of money and the cost of borrowing money (credit)cost of borrowing money (credit)The Federal Reserve System can increase The Federal Reserve System can increase or decrease the supply of moneyor decrease the supply of money