What are the likely effects of the policy for your industry

Reference no: EM131152504

Milestone (4 pages) macroeconomic subject.

Note: APA format not including reference pages

In this milestone, submit your paper on the macroeconomic forecast, industry analysis sections, and a conclusion of the macroeconomic environment paper for your final project. (Attached) For additional details, please refer to the Milestone Two Guidelines and Rubric document in the Assignment Guidelines and Rubrics section of the course.

Project Milestone: Macroeconomic Forecast and Industry Analysis

Overview: The final project for this macroeconomics course is an analysis of a country of your choice and the impact of a fiscal, monetary, or trade related policy, as well as an industry that is likely to be affected either positively or negatively by the policy. For example, raising personal income or payroll taxes cuts back on disposable personal income, which can lower the amount of discretionary funds available for consumer spending on cars or vacation travel. You will analyze and evaluate the costs, benefits, implications, and potential impacts of your selected policy for that context. As a result, you will develop conclusions about the overall value of the policy as a means of correcting the economic problem it was designed to address. Finally, you will draw "big-picture" conclusions about the importance of understanding macroeconomic conditions for companies to compete and remain profitable.

Prompt: Submit a 3-4-page paper on an econometric analysis that answers the following prompt: What are the quantitative implications and actionable insights of the chosen business, policy, or economic issue?

Specifically, the following critical elements must be addressed:

I. Macroeconomic Forecast: Using the selected school of thought, create a qualitative, short-term (i.e., 12 to 24 months) forecast detailing the impacts of your chosen policy on the economy of your chosen country. For example, if your policy is raising the minimum wage, what is the expected direction of change for key macroeconomic variables like disposable personal income, labor costs, employment, prices, inflation, and GDP from a Keynesian perspective?

A. Specifically, which macroeconomic variables (e.g., GDP, inflation, interest rates, employment, unemployment rate, consumer spending, investment spending, exports, imports, labor costs, exchange rates) should be considered? Address three to five variables and any uncertainty that exists with these variables.

B. What are the expected directions of change for your identified variables as a result of the policy? What uncertainty exists given these macroeconomic conditions?

II. Industry Analysis

A. What are the likely effects of the policy for your selected industry? Will the policy be beneficial to the industry? Will it cause costs to rise? Reduce or increase demand? Include charts and graphs to illustrate your claims where appropriate.

B. What are the likely impacts to your selected industry's international competitiveness? Include charts and graphs to illustrate your claims where appropriate.

C. What is likely to happen to the profitability of a typical company in the industry? Include historical examples, charts, and graphs to illustrate your claims where appropriate.

III. Conclusion

A. As a result of your evaluations and analyses, what final determinations have you made about the policy? Would the benefits outweigh the costs for your given country and industry? Are there unintended consequences that should be considered, and if so, what? Do you recommend the policy be enacted, continued, or repealed?

B. Finally, consider the "big picture." Why is it important to understand the different macroeconomic models? In other words, why are they significant? If you were a business leader, how would you make better decisions as a result of your knowledge of the macroeconomy? How would you use this knowledge to improve your strategies?

Reference no: EM131152504

Questions Cloud

Identify which tests are best suited for the company : Identify which tests are best suited for the company you selected and why. - Explain why some tests are not suitable.

Straight-line method for depreciation : To acquire this new machine, the firm would have to borrow $20,000 at 10% interest from its local bank, resulting in interest payments of $2,000 per year. The machine falls into the 4-year straight-line method for depreciation. The firm's marginal..

Result in no change in its ebit margin : 1. If Moon Corporation has an increase in sales, what would result in no change in its EBIT margin? Explain in details.

What is importance of reliability in production environment : What are the activities that they do under their TPM programs? What similarities do you notice between the approaches of the two companies? What differences do you identify? What is the importance of reliability in a production environment?

What are the likely effects of the policy for your industry : What are the likely effects of the policy for your selected industry? Will the policy be beneficial to the industry? Will it cause costs to rise? Reduce or increase demand? Include charts and graphs to illustrate your claims where appropriate.

Compare the original budget to the flexible budget : Compare the original budget to the flexible budget and calculate the volume variance. Compare the flexible budget to the actual budget and determine the price and quantity variances.

What coupon rate must the new bonds offer : What coupon rate must the new bonds offer in order to sell at face value? (Round your answer to 2 decimal places.)

Calculate the firm annual cash flows : Calculate the firm's annual cash flows resulting from the new project.

Identify two companies in unrelated industries : Identify two companies in unrelated industries that use TPM approaches to ensure reliability in the products or services that they sell, and in a 4- to 6-page Microsoft Word document, create a report responding to the following questions:

User Account

All Pages