“Adjusted Gross Income”
1. How is your AGI different from the amount of money you earn
in a year?
2. What does the IRS use your AGI for?
1. Adjusted Gross Income (AGI)
• Total income minus all of your deductions
• Example: Income = $50,000
• Standard deduction = $6,100
• AGI = $50,000 – $6,100 = $43,900
2. What does the IRS use your Adjusted Gross Income
• AGI is the amount of $$ your are taxed on
Econ. Agenda
1. Review AGI math problems # 1 – 3
2. Discuss Russian economic sanctions & whether you think
they are going to work. (class discussion)
HW: None! 
Where is Russia? Where is Ukraine? Where is Crimea?
This is where Ukraine is!
What is happening in Ukraine right now?
Crimea: History
Crimea was part of Russia/U.S.S.R. until 1954
when the Soviet leader Nikita Khrushchev
gifted it to Ukraine.
Crimea: History
• That didn't matter when this was all Soviet
• 1991 - the Soviet Union collapsed. And
overnight, Russia and Ukraine became
separate countries, with Crimea still in
Ukraine: East vs. West
• Western Ukraine tends to identify with Europe.
• Eastern Ukraine tends to identify with Russia.
Who does Crimea seem to identify with?
Ukraine: What has happened recently?
• late Jan. 2014 – protests erupt over rule of proRussian president Victor Yanukovych
• Yanukovych decided to ally Ukraine more with
Russia than with the European Union.
Ukraine: What has happened recently?
• Feb. 2014 – protests continue & Ukrainian govt.
violently cracks down on protesters
• 18 dead & hundreds wounded on Feb. 18th
Ukraine: What has happened recently?
• Feb. 20th – protests continue…
• 88 people killed in 48 hours. Govt. snipers
killing protesters…
Ukraine: What has happened recently?
• February 22nd: President Yanukovych
disappears & protesters take control of
presidential buildings.
• Parliament votes to remove president from
power & names interim president until elections
can be held.
• An arrest warrant
is issued for former
president Yanukovych.
Ukraine: What’s the Problem?
• February 27 – 28: Pro-Russian gunmen seize key
buildings in the Crimean capital. Unidentified
gunmen in combat uniforms appear outside
Crimea's main airports.
Ukraine: What’s the Problem?
• March 1: Russian parliament approves Vladimir
Putin's request to use force in Ukraine to protect
“Russian interests.”
Ukraine: What does Russia Want?
• March 7: Russia says it will support Crimea if the
region votes to leave Ukraine & join Russia.
Ukraine: What does the U.S. think?
• March 12: Barack Obama pledges to stand with
Ukraine (& thus against Russia) during a meeting
with interim Ukrainian Prime Minister Arseniy
Yatsenyuk at the White House.
Ukraine: So, did they vote…?
• March 16: Exit polls from Crimea's secession
referendum say 93% of voters support a
proposal for Crimea to join Russia.
• However, there are reports of pro-Ukrainians
boycotting the vote & voter intimidation, etc.
• Also, there are rules in Ukraine’s Constitution for
how secession works,
& this did not follow those
Ukraine: Why do the U.S. & the E.U. care?
• U.S. & European Union denounce the Crimean
vote & Russian decision as illegitimate & illegal.
• U.S. & E.U. threaten economic sanctions &
“further action” if Russia doesn’t back off.
Ukraine: So, what did Putin do?
• Putin & Russia signed treaty recognizing &
officially annexing Crimea as part of Russia.
Ukraine: Why does this have such huge global
• U.S., E.U. & their allies = “The West”
• Russia, China, & some other “Big C” Communist
countries = “The East”
Economic Sanctions Against Russia
3. What are the economic sanctions being enforced on
Russia right now?
4. Specifically, how have these economic sanctions
affected Russia so far?

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