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List of Benchmarks for Economics

Standard 8.Understands basic concepts of United States fiscal policy and monetary policy
  Level Pre-K (Grade Pre-K)
   1. Not appropriate for this level
  Level I (Grade K-2)
   1. Not appropriate for this level
  Level II (Grade 3-5)
   1. Not appropriate for this level
  Level III (Grade 6-8)
   1. Not appropriate for this level
  Level IV (Grade 9-12)
   1. Knows that fiscal policy involves the use of national government spending and taxation programs to affect the level of economic activity in order to promote price stability, maximum employment, and reasonable economic growth  A 
   2. Understands the concepts of balanced budget, budget deficit, and budget surplus
   3. Understands that when the government runs a budget deficit, it must borrow from individuals, corporations, or financial institutions to finance the excess of expenditures over tax revenues  A 
   4. Knows that the national debt is the total amount of money that the government has borrowed over all the years it ran deficits that have not been repaid  A 
   5. Knows that monetary policy refers to actions by the Federal Reserve System that lead to changes in the amount of money in circulation and the availability of credit in the financial system
   6. Understands that fiscal policies take time to affect the economy and that they may be reinforced or offset by monetary policies and changes in private investment spending by businesses and individuals
   7. Knows that the major monetary policy tools that the Federal Reserve System uses are open market purchases or sales of government securities, increasing the discount rate charged on loans it makes to commercial banks, and raising or lowering reserve requirements for commercial banks  A 
   8. Understands that when banks make loans, the money supply increases, and when loans are paid back, the country’s money supply shrinks
   9. Understands that changes in the money supply lead to changes in interest rates and in individual and corporate spending which may influence the levels of spending, employment, prices, and economic growth in the economy  A 

 A  = Assessment items available