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 The Organization you will be focusing on is United States Department of Defense. 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. Please include a reference slide as well as detailed speaker notes for each slide.
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Short-Run Economic Fluctuations Grading
Guide
ECO/372 Version 10
Principles of Macroeconomics
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Short-Run Economic Fluctuations
Grading Guide
ECO/372 Version 10
Learning Team 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.
Resources Required
National Bureau of Economic Research
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
7
#/7
Students selected an organization the team is
familiar with or an organization where a team
member currently works.
Students identified the three key facts about
short-run economic fluctuations and how the
economy in the sort run differs from the
economy in the long run.
Students explained 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.
Students explained how monetary policy
affects interest rates and aggregate demand.
Students analyzed how fiscal policy affects
interest rates and aggregate demand.
Students evaluated why policymakers face a
short-run trade-off between inflation and
unemployment.
Students evaluated why the inflationunemployment trade-off disappears in the
long run.
Presentation consists of 15 to 20 slides and is
appropriate for the audience.
The presentation includes relevant media and
visual aids that are consistent with the
content.
Comments:
2
Short-Run Economic Fluctuations
Grading Guide
ECO/372 Version 10
Presentation Guidelines
Met
Partially
Met
Not Met
Total
Available
Total
Earned
3
#/3
10
#/10
The presentation is laid out with effective use
of headings, font styles, font sizes, and white
space.
Intellectual property is recognized with in-text
citations and a reference page.
The presentation includes an introduction and
conclusion that preview and review major
points.
Major points are stated clearly; are supported
by specific details, examples, or analysis; and
are organized logically.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
3

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