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Principles of Macroeconomics: The Latest Version A+ Study Guide
Principles of Macroeconomics: The Latest Version A+ Study Guide
Principles of Macroeconomics
The Latest Version A+ Study Guide
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Explain the following information in your report to members of the strategic planning
committee:
How economists are both scientists and policymakers and what principles society
uses to allocate its scarce resources
Using the circular flow model, explain the flow of money and goods in an
economy.
How the economy coordinates society's independent economic actors
A country's gross domestic product (GDP) and how it is defined and calculated
How the consumer price index (CPI) is constructed and why it is an imperfect
measurement of the cost of living
The organization's strategic plan calls for an aggressive growth plan, requiring investment
in facilities and equipment, growth in productivity, and labor over the next five years. It is
your team's task to determine where, outside the United States, your organization should
locate its new manufacturing plant.
Write a 1,050-word report recommending an off-shore country and support your choice
with the following data:
ECO 372 Week 3 Money and the Prices in the Long Run and Open
Economies
The organization's strategic plan you wrote about in Week 2 calls for an aggressive
growth plan, requiring investment in facilities and equipment, growth in productivity, and
labor over the next five years. It is your responsibility to determine how the U.S economy
during this five year period will impact such an aggressive growth plan. To do so, you
should:
Analyze the history of changes in GDP, savings, investment, real interest rates,
and unemployment and compare to forecast for the next five years.
Discuss how government policies can influence economic growth.
Analyze how monetary policy could influence the long-run behavior of price levels,
inflation rates, costs, and other real or nominal variables.
Describe how trade deficits or surpluses can influence the growth of productivity
and GDP.
Discuss the importance of the market for loanable funds and the market for
foreign-currency exchange to the achievement of the strategic plan.
Recommend, based on your above findings, whether the strategic plan can be
achieved and provide support.
Identify the three key facts about short-run economic fluctuations and how the
economy in the short run differs from the economy in the long run.
Explain economic fluctuations and how shifts in either aggregate demand or
aggregate supply can cause booms and recessions using the model of aggregate
demand and aggregate supply.
Explain how monetary policy affects interest rates and aggregate demand.
Analyze how fiscal policy affects interest rates and aggregate demand.
Evaluate why policymakers face a short-run trade-off between inflation and
unemployment.
Evaluate why the inflation-unemployment trade-off disappears in the long run.
This week requires the student to address six unresolved issues in macroeconomics,
each of which is central to current political debates. Students are required to use
information and tools that they have accumulated in their study of the text and evaluate
both sides of those issues, determine which side they can support for each issue, and
defend their positions.
Assignment Steps
Select two subjects from the following list of topics and perform a 1200- 1500 word
analysis:
Print and provide a hard copy of your Power Point presentation on the night of the
presentation.