Reference no: EM131097390

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- ie Healthcare such as trends in production (output) growth for the healthcare industry. Indicate the percentage of healthcare share in the economy's GDP and the trends in change in this shares (is the industry expanding or contracting). Use data or graphs to show the share of the healthcare industry in the economy's GDP and the trends in change in this shares over time (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....For example: Use data to show the impact of business cycles (periods of economic growth and/or recessions) on the growth of the healthcare industry ....Use data to show the effect of business cycles on employment/unemployment in the healthcare industry.....Use data to show the effect of inflation on the prices of healthcare services.

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. For example, Discuss how (or if) interest rates affect the expansion of the healthcare industry. Support your discussion with data that shows the relationship between variations in interest rates and variations in expansion of the healthcare industry.

Fiscal Policy and Unemployment

Define fiscal policy and the tools that are used to implement it. ...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. For example one could use data to discuss government spending on healthcare industry or the impact of providing other healthcare policy changes like the Affordable Care Act.

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?

For example- Discuss the distribution of the healthcare industry by state, share of employment of the healthcare industry by each state, and number of producers by state. Basically, how many people do healthcare producers employ in each state? And which location (urban, rural, or particular regions) the healthcare industry is more concentrated? This section shows geographic location/s where healthcare industry has potential for growth based on current demographic facts. Where is a good place for Jenny to be a doctor based on this?

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.