Assignment:
Situation A
Jenny, your niece, is a smart high-school student who wants to make smart choices for her future. Hearing of your course in Business Economics, she has emailed you asking for advice on whether to become a medical doctor and on the best location to practice it. She recognizes the high costs of tuition and the years of study involved in becoming a doctor. She wants to evaluate if that career choice is an optimum decision for her. So she has asked you for advice.
Having read the introduction to Chapter 1 on page 3 of the textbook, you recognize the significance of such a career decision for Jenny. You decide to examine the significance of the influence that macroeconomic conditions can have on the success of a profession. So you research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Jenny with the most informed advice possible. In addition to macroeconomic issues, you also evaluate the career choice from longer-term perspectives.
Project Paper Two Outline
Below is the outline of the required paper. In each section is a brief overview of what you should expect to provide in that section.
While only the outline is due this week it is advisable to begin work on the formal paper due next week.
Title Page:
Name, class title, and date
Introduction
Here you will briefly summarize the situation and identify the macroeconomic issue(s) to be considered from the perspective of the organization/individual who is seeking your advice.
Macroeconomics Analysis- Relevant Macroeconomic Principles
Here you will be tasked to identify the variables that are relevant to the chosen scenario, and are critical in addressing the issue(s) in that case. You will be expected to gather and present data on the key macroeconomic principles that are relevant to this project. These are:
Gross Domestic Product (GDP)
Here you will provide an overview of the trends in production (output) growth for the product or industry your report is addressing. Indicate the share of the industry you are studying in the economy's GDP and the trends in change in this shares (is the industry expanding or contracting). Use graphs and tables to support your findings.
Business Cycles, Unemployment, and Inflation
What is the impact of business cycles (periods of economic growth and/or recessions) on the industry in the scenario? The effect of business cycles on employment/unemployment in the industry and the effect of inflation on the prices of the industry's products.
Monetary Policy and Interest Rates
Define monetary policy and discuss how (or if) interest rates affect the consumption in the chosen scenario. If this section is applicable, support your discussion with data that shows the relationship between variations in interest rates and variations consumption pattern (i.e. sales volume or demand) of the product or industry in the chosen scenario.
Fiscal Policy and Unemployment
Discuss how recent fiscal policy has affected the industry in the chosen scenario (growth and employment), OR, how your industry impacts fiscal policy by adding to the government's revenue (taxes) through employment.
Demographics
This section shows geographic location/s where the industry of interest has potential based on current demographic facts. Be prepared to show the distribution of the industry you are researching by state, you can use parameters such as; share of employment of your industry in each state, number of producers by state, and share of demand by state.
Basically, how many producers in each state? How many people do those producers employ? And which locations (urban, rural, or particular regions) the industry/businesses are more concentrated?
1- Recommendations and Economic Justification
Formulate and present your recommendations for addressing the issue(s) based on the relevant data and economic principles identified above. Justify your recommendations in terms of the economic impact on those affected.
2- References
List the full references for at least five sources alphabetically in APA format.