NY Social Studies 12.E4b
The Standard
The president and Congress determine fiscal policy by establishing the level of spending and taxing in the annual budget. Some tax programs are designed to provide incentives to individuals and businesses that influence private sector spending, saving, and investment.
New York State K–12 Social Studies Framework
Key Idea 12.E4
THE TOOLS OF ECONOMIC POLICY IN A GLOBAL ECONOMY: Globalization and increased economic interdependence affect the United States economy significantly. The tools that the policy makers have available to address these issues are fiscal policy, monetary policy, and trade policy.
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students trace how a proposed federal tax or spending change moves through presidential proposals and congressional action. They predict how tax incentives may change household and business decisions.
What Mastery Looks Like
- Students can read a simple budget proposal and explain who proposes, approves, and carries out its policies. They can connect a tax credit or deduction to likely changes in spending, saving, or investment.
Common Misconceptions
- Students may think the president sets the federal budget alone or that Congress only approves it. They may confuse fiscal policy with Federal Reserve actions or assume every tax cut affects behavior in the same way.
How to Assess It
- Give students this prompt: Congress approves a business equipment tax credit. Explain one likely effect on investment and identify the roles of Congress and the president.
Lesson moves
Ways to Teach It
Give teams 20 budget tokens and revenue cards, then have them build a federal budget and defend two spending or tax choices.
Ask students to write: Should the government use tax credits to encourage electric vehicle purchases, and what tradeoffs could follow?
Run a card sort where students classify actions as spending changes, tax changes, tax incentives, or monetary policy.
Have students examine a current federal tax credit and predict how it could affect one household or business decision.
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Printable 12.E4b Worksheet
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