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.
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.
Your presentation should include an introductory slide as well as a slide with your conclusions. Use the bolded words/phrases shown below as titles for your slides.
1. Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause expansions and recessions using the model of aggregate demand and aggregate supply. Discuss whether the U.S. economy is currently in the expansion phase of the business cycle or in a recession and support your discussion with economic statistics.
2. Evaluate why policymakers face a short-run trade-off between inflation and unemployment and why the unemployment's trade-off disappears in the long run. Support your contentions with statistics on inflation and unemployment from the Bureau of Labor Statistics.
Create 4 to 5 Power Point Slides.