Reference no: EM13134221
1. Staple all pages of your homework together.
2. Type your homework.
3. If you want the final exam grade to replace the lowest grade from the first two exams, write the following statement and sign your name. I want the final exam grade to replace the lowest exam grade.
4. The Council of Economic Advisers, an agency within the Executive Office of the President, is charged with offering the President objective economic advice on the formulation of both domestic and international economic policy. The Council publishes important economic indicators monthly. Five economic indicators for October have been saved to the shared drive. The economic indicators are consumer prices, corporate profits, government debt, gross domestic product, and unemployment. Choose three of the five indicators and write a summary for each. The summary needs to include the following parts:
a. A description of what each indicator measures.
b. Strengths and weakness of each indicator.
c. The value of each indicator in the most recent period.
d. Your one year forecast for each indicator. Justify and fully explain your forecast.
e. Your five year forecast for each indicator. Justify and fully explain your forecast.
5. Based on your summary above, the President has chosen you to provide an economic plan outlining the next four years. The proposal needs to include the following parts:
a. Draw the aggregate demand and aggregate supply diagram based on the current state of the economy. (Hint: Actual price level or Real GDP are not needed.)
b. A description of monetary policy and all policies available to the Federal Reserve.
c. Your recommendation to the Federal Reserve regarding monetary policy. Justify and fully explain your recommendation.
d. A description of fiscal policy and all policies available to the President and Congress.
e. Your recommendation to the President regarding fiscal policy. Justify and fully explain your recommendation.
f. Draw the aggregate demand and aggregate supply diagram four years from now provided your policy recommendations are undertaken.
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Draw the aggregate demand and aggregate supply diagram
: Draw the aggregate demand and aggregate supply diagram four years from now provided your policy recommendations are undertaken.
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