INSTRUCTIONS: You are to watch the two videos on YouTube (see below) related to Gross Domestic Product, Unemployment, and Business Cycle. After you are done watching the two videos, turn in the week's assignment by answering the following questions thoroughly and in details. You may need to use other materials instead of just the information presented in the two videos. It is important to be as thorough as possible and be creative. Be sure to save your assignment prior to submitting it on Canvas. As a reminder, be sure to submit it before the assignment's due date and time and do not submit it to me via regular e-mail. No exception! No late assignment will be accepted.......The 27-point assignment must be typed and double-space. It is important you spend quality time in this assignment and be as thorough as possible. I will deduct 5 points from the assignment if the assignment is not "double-spaced."1. Definition of GDP and describe the four key components that make-up GDP2. Differences between nominal and real GDP 3. Under what 3 reasons might a person be classified as "underemployed?"4. Different types of unemployment 5. Can the economy's overall rate of unemployment be at zero percent? Be sure to explain in details why not. 6. What does it mean when the economy is at "full employment?" 7. Define business cycle and what are the four phrases of the business cycle? How does the rate of unemployment be different at each stage of the business cycle?8. Out of the four key components that make up GDP, which one is influenced the most by disposable income (after-tax income) and be sure to explain why?9. Given the following macroeconomic data for the years 2014, 2015, and 2016; and using 2015 as a base-year: 2014 2015 2016 P Q P Q P QCOFFEE $0.75 50 $0.95 75 $1.15 80SHOES $15 60 $17 65 $20 70Compute the rate of Real GDP growth rate between 2015 and 2016. All steps must be shown logically and there will be no partial credits for this mathematical problem.

Supply & Demand Read the linked article, “I, Pencil” by Leonard Read. (https://fee.org/resources/i-pencil/) I especially like my friend Larry Reed’s introduction, and Milton Friedman’s afterword here.Write at least a page, double spaced about how – while no one person anywhere knows all the steps to make something as simple as a pencil – pencils, cars, medicines, and many other goods are somehow provided by markets, with no top-down planning necessary. How do markets achieve this?

Competency 3 - The Global EconomyCompetency 2 - The Federal Reserve, Government, and the Economy Part 2 Competency 2 - Reflection Assignment Content Reflection- This reflection activity is comprised of two sections collectively totaling a minimum of 500 words. Complete your reflections by responding to all prompts. Federal Reserve Analyze how changes in the Federal Reserve’s monetary policy affect at least 2 of the 4 components of GDP (e.g., consumption, investment, government spending, net exports). Justify your answer to the following question: Have the Federal Reserve’s countercyclical monetary policies been effective in moderating business cycle swings? Government Intervention Government interventions into markets can sometimes succeed, but sometimes they make the situation worse. Explore 2 examples of government intervention that did not work. Explain why the intervention made things worse and what could have been done differently to improve the situation. Support your analysis by including: What the situation was What the intervention sought to solve What happened What might have been done differently Competency 3 - The Global EconomyPart 2 Competency 3 - Reflection Reflection- This reflection activity is comprised of two sections collectively totaling a minimum of 500 words. Complete your reflections by responding to all prompts. Exchange Across International Borders The success of an economy in effectively employing the four factors of production determines how well that economy performs relative to its potential and relative to other economies. Address the following: Evaluate non-monetary benefits that open trade has contributed to the world since the end of World War II. Provide at least 2 examples of the above benefits and explain why you believe each is important. Analyze how changes to U.S. trade and tariff policies affected U.S. trade with other nations. Support your responses with recent (less than 2 years old) credible news sources. The Global Role of the US Economy Consider that some politicians, labor unions, and special interest groups argue that U.S. trade deficits are harmful to the economy, and nations that run large trade surpluses with the United States are benefiting from unfair trade practices and agreements. These parties support increasing tariffs on imports and eliminating or rewriting trade agreements. Analyze 2 credible economists’ opinions on the effects of 2 of the following factors with respect to the total U.S. trade balance. Find 1 economist who is less concerned about trade deficits, who thinks they are less important, or that they mean something else is good (U.S. consumers have more disposable income for example). Then, find another economist who is more concerned (he or she may see a trade deficit as having adverse employment effects, for example). Weigh in their different perspectives, and state whether you agree or disagree with their assertions, providing the logic behind your thinking. The factors to analyze include: Tariffs Changing trade agreements Manipulating exchange rates