Economics Assignment

timer Asked: Jun 2nd, 2019
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Question Description

This assignment is aligned to this course outcome:

  • Apply macroeconomic concepts to current and personal economic events and decisions.

In addition to writing about macroeconomic concepts, it's equally important to be able to convey your understanding of these concepts by communicating them to others. In the workplace you might do this by writing briefs (like you did for Assignment 1), creating presentations, or writing reports for your manager or team. An example final report and optional template are provided below.

For this Final Report assignment, you can build off your previous economic brief and selected industry from Assignment 1, or you can select another industry such as Finance and Insurance, Health Care, or Manufacturing, and examine one of the macroeconomic indicators or policies below:

  • GDP growth
  • Unemployment rates
  • Inflation rates
  • Interest rates
  • Imports and exports
  • Government fiscal policy and issues related to taxation, government spending, and budget deficits
  • FED (central bank) monetary policy and issues related to the FED’s mission to stabilize the economy

Example Final Report, Assignment 2 Template, Strayer Writing Standards

  1. Review an example final report.
  2. Use the optional template to help you get started.
  3. Review the Strayer Writing Standards. (See Instructions below.)


Use Microsoft Word to prepare a Final Report that is a minimum of two to three (2-3) pages long in which you:

1. Introduce your selected industry with a brief one-paragraph introduction. Refer to the NAICS (North American Industry Classification System) to review the details about your industry.

2. Assess your selected industry’s relative size and growth rate in the economy.

These macroeconomic resources will help you find the size and growth rate of your industry in the U.S. economy and/or relative to GDP:

Real GDP – Select Section 1, then table 1.1.6 (select MODIFY to change the year range and frequency). Data is from Bureau of Economic Analysis (

% Change in Real GDP – Select Section 1, then table 1.1.1 (select MODIFY to change the year range and frequency). Data is from Bureau of Economic Analysis (

GDP by Industry – Steps:

1. Select "Interactive Data."
2. Select "Industry Data Tables."
3. Select "Begin Using the Data."
4. Select "Gross Output by Industry."
5. Select "Real Gross Output by Industry (A) (Q)."
6. Select “Quarterly” or “Annual.”
7. Select "Next Step." Data is from Bureau of Economic Analysis (

% Change in GDP by Industry - Steps:

1. Select "Interactive Data."
2. Select "Industry Data Tables."
3. Select "Begin Using the Data."
4. Select "Gross Output by Industry."
5. Select "Percent Changes in Chain-Type Quantity Indexes for Gross Output by Industry (A) (Q)."
6. Select “Quarterly” or “Annual.”
7. Select "Next Step." Data is from Bureau of Economic Analysis (

3. Identify one newsworthy macroeconomic indicator or policy (e.g., GDP, unemployment, inflation rates, interest rates, government taxation and spending decisions, and/or FED decisions) that the industry should monitor and explain why it’s important and how it might impact your selected industry.

These resources are available to help you measure and track macroeconomic indicators and outcomes of macroeconomic policies.You’ll use one or more depending on the macroeconomic indicator selected.

Unemployment ratesData is from Bureau of Labor Statistics (

Inflation rates as measured by the Consumer Price Index (CPI). Data is from Bureau of Labor Statistics (

% Change in Real Exports and Imports - Select Section 4, then table 4.2.1. (Select MODIFY to change the year range and frequency.) Data is from Bureau of Economic Analysis (

Government receipts, expenditures, and savings – Select Section 3, then table 3.1 for total government and table for 3.2 for federal government. (Select MODIFY to change the year range and frequency.) Data is from the Bureau of Economic Analysis (

FED Funds Interest Rates. Data is from Trading Economics (

4. Describe a recent trend in the macroeconomic indicator or policy. Include a graph, chart, or table that illustrates the observed trend.

5. Summarize how you think this industry will perform in the future. Provide support for your rationale.

6. This course requires use of Strayer Writing Standards (SWS). The format is different compared to other Strayer University courses. Please take a moment to review the SWS documentation for details. (Note: You’ll be prompted to enter your Blackboard login credentials to view these standards.)

    • Your brief should include a cover page.
    • Your brief should be a minimum of two to three (2-3) pages in length (not including the cover page), double-spaced, 12-point font.
    • Your report should include a minimum of two (2) references/citations in the text.

Unformatted Attachment Preview

Assignment 2: Final Report Example Paper Strayer University ECO100 Dr. Jean Fonkoua September 8, 2018 1 Final Report: Airline Industry Introduction The US airline industry is on a winning streak following seventeen consecutive productive quarters. Even with its most significant operational costs, labor, and fuel spikes, persistent demand on increasing capacity, the airline industry remains in the black. This paper will focus on critical areas such as the assessment of favorable growth rates up through 2036, government taxation and its impact and trends on the airline industries. All signs point to growing demand for global connectivity. Alexandre de Juniac, Director General, and CEO of the International Air Transport Association (IATA) said, “The world needs to prepare for a doubling of passengers in the next 20 years. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand” (1). Size and Growth Rate Assessment The IATA, in its latest press release, updates that the airline industry is expected to see roughly 7.8 billion air travelers in 2036, almost double the 4 billion air passengers anticipated to fly this year. This latest update comes from the most recent release of the IATA's 20-Year Air Passenger Forecast, base prediction on a 3.6% average Compound Annual Growth Rate (CAGR) (2). Global air travel is expected to sustain favorable growth rates up to 2030, notwithstanding hurdles faced within the industry. High jet fuel prices and slow economic growth worldwide caused strains within the industry. Although challenging, improvements in passenger totals offset tense economic circumstances which quickly translate into an increased financial performance of the airline industry. Strong representation in passenger patronage supports an impressive GDP growth of 3.5% (the strongest since 2010). Subsequently, the global aviation 2 industry is predicted to reach up to 33.8 billion US dollars in profits by the close of 2018, up from barely 8.3 billion in 2011. Annual growth report shows that between "2017 and 2036, the number of airline passengers is expected to increase at a combined annual growth rate (CAGR) of 4.7 percent" (2). Key Indicator to Monitor (Inflation) and Importance and Impact to the Airline Industry In the airline industry, important macroeconomic indicators are unemployment, inflation, and the business cycle. An important indicator, inflation, influences both the business cycle and unemployment rates, and so it must be monitored closely by the airline industry. For example, the airline industry earnings are reduced at a startling pace due to inflation. Decreased profits affect the economic position of the airline industry, which in turn produces a weak employment environment. Moreover, there is an interchangeable correlation between inflation rates and the rate of unemployment. This relationship includes trade-offs whereas a given high rate of inflation lowers the rate of unemployment to reduce inflation, price regarding a higher percentage of unemployment must be borne (3). Inflation increases the price of goods and services and decreases the purchasing power of customers. Also, increases to products and services generate higher fuel costs resulting in steep ticket prices and sometimes canceled routes to lower costs for the airlines. Furthermore, inflated fuel prices subsequently increase the overall costs and significantly decreases the demand in the airline industry (IATA, 4). Since 1996 the inflation-adjusted price of air travel to consumers has reduced by half. The IATA reports that "International tourists traveling by air are expected to spend more than $750 billion in 2018, a rise of 15% in just over 2 years" (4). Furthermore, financial instability within the industry reduces the ability to hire new employees, thus creates an 3 increase in unemployment rates, which in turns is passed on by influencing the quality of the services given to its patrons, which also contributes to lower demand for goods and services. Moreover, variations in the interest and employment rates further correlate to the airlines business cycle (or economic cycle). A business cycle is a sequence of various periods of economic growth and a declining period, or, "the transition of the economy from peak to trough and trough to peak" (5). Inflation will force the airline industry towards economic decay, and it will create financial uncertainty in the industry. The airline industry has a long-term business cycle, which produces low earnings and yields to its stockholders. In the development and growth cycles of business, both the production and hiring boom until the full employment of resources and production reach their peak Inflation – Recent Trends Within the Airline Industry Profits within the global airline industry will drop in 2018 as fuel, labor and interest rates increase. In December, the IATA flagged higher than average spending on labor and fuel, which make up more than half of the operating expenses within the airline industry. Within the last few months, the IATA then lowered its profit prediction for 2018 by 12 percent to $33.8 billion, down from its December forecast of $38.4 billion (6). Moreover, airline jet fuel costs are estimated to increase to as much as $84 a barrel in 2018, while the IATA's December estimates were based on a per barrel price of $70 (7). Furthermore, on April 26, Douglas Parker, CEO of American Airlines, noted that oil prices have spiked to 60% from last summer, a significant increase over a short period (8). 4 Meanwhile, the U.S. Bureau of Labor Statistics reports the cost of an airline ticket in 2018 is 10.01% higher versus that of 2000, which is a $10.01 disparity in value (9). Between 2000 and 2018, airline ticket pricing experienced a median rate of inflation of .53 percent per year. Put differently, a $100 ticket in 2000 would now cost $110.01 in 2018 (9). In fact, in June, IATA's Director General and CEO, Alexandre de Juniac, on concerns of increased fuel costs, declared the inevitable, airlines would have to pass some of the fuel burdens onto its passengers (10). As fuel costs increase, the airline’s objectives are still all about their revenues. As seen in the chart above, the Q2 2017 to Q2 2018 income statement for United Airlines show us the impact to net income and the airline's ability to increase the ticket revenue beyond the increased fuel costs. Conclusion In conclusion, we consider inflation a well-known economic indicator within the airline industry, as well as other signs arising as crucial for understanding the actual market demand. While GDP remains as an essential driver for the airline industry, its relationship to aviation’s 5 growth has evolved, this is apparent at a global level, though induced by actions at a locally geographical level. Moreover, inflation is not the only factor that motivates airline growth, elements such as private consumption, international trade, tourism, crude oil prices, airline profits and increase in productivity all contribute to the economic factors (11). The result provides a unique viewpoint on the strategies of the global airline industry, considering fuel costs, which have significantly increased for all airlines. The federal government in its quest to continue its full potential of progression has implemented global standards on security, taxation, and global regulations to build cost-efficient infrastructure and house increasing demand to the detriment of the airline industry. 6 Sources 1. IATA, 2017, 2036 Forecast Reveals Air Passengers Will Nearly Double to 7.8 Billion, 2. Statista, 2018, Annual growth in global air traffic passenger demand from 2005 to 2018, 3. OpenStax, 2015, The Phillips Curve. OpenStax CNX., 2018, A Journey Through American Transportation 1776-2016, 4. IATA, 2018, Air Passenger Market Analysis – April 2018, 5. OpenStax, 2017, Tracking Real GDP over Time, OpenStax CNX, 6. IATA, 2018, Economic Performance Of The Airline Industry, 7. David Reid, 2018, Airline profits to slump in 2018, industry body says, 8. Dough Cameron & Bradley Olson, 2018, Companies Feel the Impact of Rising Oil Prices, 9. BLS, 2018, Bureau of Labor Statistics- Consumer Price Index-Airline Fares, 10. Tim Hepher and Victoria Brown, 2018, Global Airlines Issue Warning Over Trade Tensions, 11. IATA, 2017, Strong Airline Profitability Continues in 2018, 7 Final Report Title By Your Name ECO100 Professor’s Name Date 1. Introduction (In this section, provide a one-paragraph brief introduction about your selected industry. Please delete all instructions and use double-spacing before submitting your paper.) 2. Size and/or Growth of Industry Write at least one paragraph assessing the size and/or growth rate of the industry relative to the national economy. If you click on the GDP by industry, you should be able to assess the numbers related to the size and/or growth rate of the industry relative You may also click on the percentage change in GDP by industry (especially the value added by industry) for additional inputs to this question. • • • • You should use the statistics to determine the weight of the industry relative to the GDP. You may also use the revenues, number of employees, and/or number of customers to substantiate your idea. Do not use bulleted or numbered lists. Write clearly and professionally; follow the Strayer Writing Standards. 3. Macroeconomic Indicator or Policy and Its Importance and Impact Write at least one paragraph identifying the macroeconomic indicator or policy that the industry should monitor (inflation, unemployment, imports and exports, government expenditure, taxes, and/or interest rates). Explain why the macroeconomic indicator or policy is important and how it may impact the industry. • Consider its importance and impact by looking at one or more of the indicators below: The operational costs supported by the industry as compared to the revenues. The trends observed in terms of profits and/or number of employees to substantiate your idea. Do not use bulleted or numbered lists. Write clearly and professionally; follow the Strayer Writing Standards. 1. 2. • • 4. Recent Trend Write one paragraph describing a recent trend in the macroeconomic indicator or policy in part 3. Include a graph, table, or chart that illustrates the observed trend. • • • Focus on the stability or increase/decrease of the chosen indicator when commenting on the graph, be certain to follow your graph or table with substantiated comments, explaining any major discrepancy in the data or the change in the shape of the curve. Do not use bulleted or numbered lists. Write clearly and professionally; follow the Strayer Writing Standards. 2 5. Conclusion Write a one-paragraph conclusion that summarizes how you think the industry will perform in the future. Attention should be paid to whether the observed trend is expected to continue. • • • • • This should be your (own) opinion. Explain what you learned about the topic. Attention should be paid to whether the observed trend is expected to continue. You may also expand upon this point by explaining what conclusion you draw from your research on the topic. Do not use bulleted or numbered lists. Write clearly and professionally; follow the Strayer Writing Standards. 3 Sources 1. List in order of use. 2. List a second source here. 3. Repeat for additional sources. 4 ...
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Final Report


By Your Name


Professor’s Name


1. Introduction
The sector of Health Care and Social Assistance industry focuses on providing health
care as well a tailored social assistance services to individuals. Some of the common players in
this sector include hospitals, nursing homes, child care facilities, doctors, pharmacies, medical
equipment manufacturers, and diagnostic laboratories, among others. The United States’ health
care is making strides in fully adopting a value-based model rather than fee-for-service (volume)
based care. However, this move is not expected to be easy due to the ever-changing processes,
policies as well as complexities impacting the United States’ health care and social assistance
industry. Other important factors include limited financial resources, revenue pressure,
deteriorating financial rates, technology, and demand for the latest equipment (1). This paper
seeks to discuss the size and growth, one important macro...

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