Describe three facts about short-run economic fluctuations

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Reference no: EM131814087

Assignment: Short-Run Economic Fluctuations

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)

Reference no: EM131814087

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