Identify three key facts about short-run economic fluctuations
Students will example the model economists use to analyze the economy’s short-run fluctuations–the model of aggregate demand and aggregate supply. Students will learn about some of the sources for shifts in the aggregate-demand curve and the aggregate-supply curve and how these shifts can cause fluctuations in output. Students will be introduced to actions policymakers might undertake to offset such fluctuations. Students will see why there is a temporary trade-off between inflation and unemployment, and why there is no permanent trade-off.
Assignment Steps
Select an organization your team is familiar with or an organization where a team member currently works. Assume this organization is concerned about the current economic climate in the United States. Team has chosen to do presentation the solar industry
Create a 15- to 20-slide Microsoft® PowerPoint® presentation to present to the organization’s Executive Committee. The presentation will discuss how the following items will affect the organization and its industry:
Identify three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run. (Need three slides on this bullet only.) Please include detailed speaker notes.
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.
In your presentation, make sure you discuss how your selected organization and its industry are affected by the above economic items.
Your slides should be presentable, easy for your audience to understand (you can use words, pictures, charts, etc.), and cover all the bullet items above.
Click the Assignment Files tab to submit your presentation slides
Answer preview Identify three key facts about short-run economic fluctuations
5 slides