Economic forecasts

  1. Briefly summarise the BtN story.
  2. What do economists study when trying to work out the economic forecast?
  3. What do they use to help predict the economic future?
  4. Explain how the economy in one country can affect other countries?
  5. What is happening to economies in other countries at the moment?
  6. How does that affect Australia?
  7. What impact might it have on your family?
  8. How are the Federal and State Governments reacting to the economic forecasts?
  9. Do you think economic forecasts are helpful? Explain your answer.
  10. What do you understand more clearly after watching the BtN story?

Interview adults (at school or home) about how the economic forecast might affect them. Record the responses and share with the class.

ABC 730 Report – Rudd Govt releases revised economic forecasts

ABC 730 Report – Financial crisis tops Parliaments’ agenda

ABC News – RBA to release economic forecast

ABC News – Henry denies Treasury pressured over forecast

Credit crisis

  1. What is a mortgage?
  2. What is the name of a mortgage given to people with insecure jobs or on lower incomes?
  3. What criteria does the lender require when giving mortgages?
  4. If a borrower doesn’t repay their loan, how does the lender usually get their money back?
  5. What’s happened to the price of houses in the US recently?
  6. What effect has this had on the lenders?
  7. Why does the subprime mortgage crisis in the US affect other countries?
  8. What is the US Government going to do to help support the economy?
  9. Do you think this is fair? Explain your answer.
  10. What are some ways the credit crisis could affect your family?

ABC News – Gillard stresses local relevance of US crisis

ABC News - Subprime crisis will hurt into 2009

Children’s BBC – World caught in huge cash crisis

Children’s BBC – US to spend $700bn to help banks

Howstuffworks – How mortgages work

Recession

With the price of housing, petrol and groceries going up and people spending less, some experts are worried that Australia might be heading towards a recession.

Focus Questions

1]In your own words, explain what a recession is.

2]What affect does a strong economy have on business and spending?

3]What do you think is meant by consumer confidence?

4]What factors can make the economy slow down?

5]How does this impact on businesses and consumers?

6]How long does the economy need to go bad before it is called a recession?

7]What is disposable income and what impact does a recession have on it?

8]What happens to employment during a recession?

9]What can the Reserve Bank do to try and stop a recession?

10]How does a slow economy affect the way you live?

The `R’ word

In groups of 4-5, ask students to brainstorm all the words they associate with the word recession. Students report back to the rest of the class to share their thoughts.

Watch the BtN story about recession again and listen carefully. Circle each of the following words as you hear them. Record any unfamiliar words.

recession / economy / interest rates
consumer confidence / cautious / expensive
disposable income / luxuries / employees

Ask students to write what they think is the meaning of each word (including any unfamiliar words). Swap definitions with a partner and ask them to add to or change the definition. Check these against the dictionary definition.

How would a recession affect your lifestyle?

Students will reflect on how a recession would affect their lifestyle. What are some of the consequences of a recession (job losses, rising prices of food, petrol etc) and how this impacts on how they life. Students need to think about both essential and luxury items. Present their information to the group in a creative way. Some possibilities are:

  • Role play
  • Poster
  • Comic strip or storyboard
  • Oral presentation.

Further investigations

Interview adults (at school or home) about how a recession would affect them. Do they remember other times when Australia was in a recession? How did affect their lifestyle then? Record the responses and share with the class.

Create a rap/rhyme, puzzle or artwork based on the topic of `recession’.

Related Research Links
ABC 730 Report – Economists predict tough times ahead for US economy

ABC News – RBA bleak on Australia’s economy - video link

ABC Lateline Business – Australia’s economy slowing faster than expected

BBC News – What is a recession?

Budget time

1]Who is the Federal Treasurer?

2]Where does the Government get money from?

3]What areas does the Government spend money on?

4]Why do you think the budget is kept a secret until budget night?

5]It’s predicted there will be a big surplus this year. What does this mean?

6]Do you think the Government should spend money that is left over? Explain your answer.

7]What is a deficit?

8]If you were the Treasurer, what would you spend money on and why?

9]Does your family have a budget? What changes would you make to it?

10]What do you now know about the Federal Budget that you didn’t know before?

11]How does the Federal budget affect you? Create an artwork to illustrate your response.

ABC News - Treasurer says low income workers will benefit from budget

Australian Government Budget website

Parliamentary Education Office – Government website

Parliamentary Education Office – Budget fact sheet for children

Inflation

Curriculum outcome links: Society and Environment

Student learning outcomes

Students will:

  • Develop an understanding of what inflation is and how it impacts on society.
  • Develop an understanding of what goods and services are and how they are affected by inflation.

Focus questions

  1. What is inflation?
  2. What are goods and services? Brainstorm with other class members.
  3. Why does inflation happen?
  4. What happens to goods and services when we have inflation?
  5. How does this affect people and the way they live?
  6. What is contributing to inflation in Australia at the moment?
  7. How do increasing petrol prices impact on the price of goods and services?
  8. What are interest rates?
  9. How does increasing interest rates slow down inflation?
  10. What is the role of the Reserve Bank?

Suggested Activity Procedure

After watching the Behind the News story, clarify students’ understanding of inflation and goods and services.

Partner discussion

`Who is most affected by inflation?’ Report back to the class.

Ask students to brainstorm a list of goods and services they use.

Have these been affected by inflation? (For example, have they noticed the price of food in the canteen or a movie ticket, increase recently?)

Why has the price of some goods and services increased and not others?

Ask students to interview family members about how inflation affects them.

Key questions could include:

  • What impact has inflation had on the way they live?
  • What changes have they made to the way they live in the last 10 years?
  • Who do they believe is most affected by inflation?

Ask students to present their findings to the class. Suggested ways of presenting include:

  • A PowerPoint presentation
  • Using Inspiration software
  • Role play.

Teaching and learning follow-up suggestions

Knowing
Write an A-Z of goods and services affected by inflation.

Understanding
What impact has the drought had on the price of goods and services?

Applying
Make a collage showing how inflation has affected your life.

Analysing
List the advantages and disadvantages of inflation.

Creating
Create one of the following based on the topic of inflation:

  • Rap/rhyme
  • Poem
  • Puzzle
  • An art work
  • Cartoon.

Evaluating

Prepare and present a one minute talk convincing people that inflation is positive thing.

Related links