Short-Run Economic Fluctuations

Short-Run Economic Fluctuations

Short-Run Economic Fluctuations

• Due Jan 16, 5:59 PM
• Not Submitted
• POINTS 10
• Team Presentation
• no new messages

Objectives:

• 4.1
• 4.2
• 4.3
• Instructions
• Assignment Files
• Grading

Purpose of Assignment

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

Resources: National Bureau of Economic Research

Select an organization your team is familiar with or an organization where a team member currently works.

Create a 15- to 20-slide Microsoft® PowerPoint® presentation to present to the organization’s Executive Committee.

Include the following items:

• 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.

Format your PowerPoint in the following way:

*  every slide must have a relavant visual

*  bullet points, NOT complete sentences, should appear on the slides

*  references should be provided and printed in APA format

*  Only Peer-reviewed references are acceptable

Presentation In Class: 

*  The team will present their Powerpoints to the class.  You must know your content – you can use note cards, but you may not read.

*  An activity, which relates to the presentation, will be done with the class.  (Be creative)

Click the Assignment Files tab to submit your assignment.