Reference no: EM133195732 , Length: 2 Pages

Assignment:

You will be assigned current event report writing throughout the semester.

The topics selected may or may not relate to that week's reading but will be related to economics.

This is to gauge your general understanding of the current economic events that take place every day in our lives. It is to force you to think out of the box; broaden your horizon and to do some research besides reviewing your text book.

Instructions:

1. Write 1 to 2 pages on the given topic.

2. You can include addendums but that will not be considered as a part of the report.

3. Please use 11-12 font size.

4. Double spaced

Attach your report via BB; open the folder and there is an option to attach:

Review the following new clip and answer the following questions:

U.S. producer prices unexpectedly fell in September, leading to the smallest annual increase in nearly three years, which could give the Federal Reserve room to cut interest rates again later this month.

The weak producer inflation readings reported by the Labor Department on Tuesday came against the backdrop of a slowing economy amid trade tensions and cooling growth overseas.

The Fed cut rates in September after reducing borrowing costs in July for the first time since 2008, to keep the longest economic expansion on record, now in its 11th year, on track.

The producer price index for final demand dropped 0.3% last month, weighed down by decreases in the costs of goods and services, the government said. That was the largest decline since January and followed a 0.1% gain in August.

In the light of the above news clip:

1. What will be the impact of smallest annual increase on GDP growth over a period of time?

2. If FEDS cut interest rates will that help to stabilize the economy? If yes, Why or why not?

3. According to your understanding of the economic growth, what advice would you give to the FEDs to stabilize economic growth?

Develop a report (1 to 2 pages) based on this current event analyzing the Consumer's and Producer's incentives (Hint: Demand and Supply) to continue to be a part of this business.

Give real-life examples in support of your discussion.