Assignment: Apply the Principle- The Philips Curve
In the Ten Principles video, Dr. Todd Buchholz and Dr. Caroline Hoxby debated the very existence of the Phillips Curve.
Dr. Hoxby indicated she was taking bets that th4tPhillips Curve is alive and well. The problem may be that it moves around and possibly changes shape occasionally.
Policy makers like Congress and the Federal Reserve seek to steer the U.S. economy to a sweet spot where we have low unemployment and only moderate inflation. The Phillips Curve is supposed to describe the trade-off between inflation and unemployment. Does it?
Read the Business Insider article: Japan can help us better understand one of the biggest puzzles facing the US economy.
1. Using data from the Bureau of Labor Statistics, what is the current level of unemployment? Be sure to include the link to where you have found your information.
2. Using data from the Bureau of Labor Statistics, what is the current level of inflation? Be sure to include the link to where you have found your information.
3. Are these high or low compared to historical averages in the United States?
4. Should policy makers ignore the 'historically observed Phillips Curve relationship' and push unemployment even lower? Explain your thoughts.
This paper must include:
- Your introduction, summary, and understanding of the initial article/video.
- A short discussion of your research and conclusions you were able to draw from it.
- An explanation of what you learned and how you will use this new understanding.
Write a two to three page paper in which you:
1. Write an introduction for your paper explaining what the topic is, why the topic in the article/video is important to you, and why you think others should try to understand it.
2. Write at least one paragraph summarizing the key points made in the article/video.
3. Identify and explain how Mankiw's 10 Principles are foundational to the issues discussed in the article/video.
4. Find two other high-quality professional or academic quality articles on the same topic. Identify what these articles contribute to understanding the topic or issue and whether they agree, do not agree, or somewhat agree/disagree with the initial article.
5. Write a conclusion that explains what you learned about the topic and what conclusion you draw from your research on the topic.
6. Use at least two quality resources in this assignment.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA formatting. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.