An Educator’s Guide to Maximum Employment

Issued by Federal Reserve Bank of St. Louis

This module describes how economists measure employment and unemployment -- these are key economic indicators used to measure the health of the U.S. economy and to determine what type of policies the Fed should use to promote a strong U.S. economy.

Type Learning
Level Foundational
Time Hours
Cost Free

Skills

Apply an understanding of the maximum employment to monetary policy
Explain how the 2020 Framework Update Changed the Fed’s approach to policy decisions
Explain how the Fed determines whether the economy has reached maximum employment
Explain how the unemployment rate is calculated

Earning Criteria

To earn this badge you will read content, watch two videos, and complete three assessments.

Standards

Voluntary National Content Standards in Economics

The most recent version (2010) of the Voluntary National Content Standards in Economics does not align with the Fed’s ample reserves implementation of monetary policy. You can read our recommendations for updating the Voluntary National Content Standards in Economics at https://www.federalreserve.gov/econres/feds/files/2020092pap.pdf