Macro Activity- The FEDexes Fix the the Economy

The video tutorial introduces a group activity called 'FedEx is Fix the Economy' for macroeconomics students to practice monetary policy and money supply calculations. Participants form groups, use game pieces representing former Federal Reserve chairs, and follow scenario cards to simulate economic conditions. Each member secretly performs actions based on random computer-generated results to influence the money supply. The game involves strategy, including the option to lie, to progress through districts and earn points. The goal is to reach District 1 first, with the highest points determining the winner.

What materials are required for the monetary policy activity?

• Game boards, scenario cards, and a computer

• Fed chair pieces, a calculator, and a textbook

• Scenario cards, a worksheet, and a textbook

• Game boards, Fed chair pieces, and a calculator

In the initial scenario, what is the unemployment rate?

• 13%

• 15%

• 10%

• 5%

What is the purpose of using the website in the game?

• To track inflation rates

• To communicate with other players

• To determine monetary policy actions

• To calculate taxes

How is the total change in money supply calculated?

• By dividing the initial change by the reserve requirement

• By adding the reserve requirement and discount rate

• By multiplying the initial change by the multiplier

• By subtracting the inflation rate from the unemployment rate

What happens if a player is caught lying about their results?

• They are out of the game

• They cannot move to the next district

• They move back two districts

• They lose all their points

What is the ultimate goal of the game?

• To reach District 1 the fastest

• To have the highest unemployment rate

• To have the lowest inflation rate

• To collect the most scenario cards

How many points does a player earn for reaching District 1 first?

• One point

• Three points

• Two points

• Four points