Description: This interactive activity reinforces students’ comprehension of the linkages between monetary policy and the economy. The activity first reviews the key concepts on this topic. Students then participate in an active-learning demonstration showing how changes in monetary policy ripple through the economy to move the economy toward the Fed’s goals of maximum employment and price stability.

Click HERE to go to the St. Louis Fed Lesson Page

Click HERE to download a copy of the instructor procedure (PDF)

Click HERE to download a copy of the PowerPoint slides