Evaluate why policymakers face a short-run trade-off between inflation and unemployment.

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Short-Run Economic Fluctuations

Due Jan 16, 5:59 PM
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POINTS 10
Team Presentation
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Objectives:

4.1
4.2
4.3
Instructions
Assignment Files
Grading

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)

Click the Assignment Files tab to submit your assignment.