Description
Assignment Steps
Resources: National Bureau of Economic Research; Principles of Macroeconomics: Ch. 1, 2, 3, 4, 5, 6, and 7
Scenario: Your organization's CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing a report to introduce some of these thoughts and principles.
Develop a 875-word report to the members of the strategic planning committee explaining the following information:
- What principles society uses to allocate its scarce resources
- Using the circular flow model, explain the flow of money and resources in an economy.
- A country's gross domestic product (GDP) and how it is defined and calculated. Be sure to include the differences between real GDP and nominal GDP
- How the consumer price index (CPI) is defined and constructed? Research the current CPI and inflation rate of US. And explain the importance of CPI on the cost of living measurement.
Explanation & Answer
Hello, am done with your task as per your instructions,all points are clearly explained.Thank you so much.
Running head: PRINCIPLES OF ECONOMICS
Principles of Economics
Student’s name:
Professor’s name:
Course title:
Date:
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PRINCIPLES OF ECONOMICS
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Thoughts and principles of microeconomics should be highly utilized in all business
organizations. Such principles are used during planning and decision making process within
organizations. In this report, I will extract and explain more of these thoughts and principles
which should be utilized among our members (Fisher, 2013). In such an approach, our members
will be able to come up with more strategic plans for benefit of our organization.
The following are some of finance principles which organization members should
practice when allocating scarce resources; People or organizations face trade off. This principle,
is of great impact since organizations members will make decisions depending on their past
experiences. Trade-off impact implies state of balance when allocating resources. In this
situation, members will be able to allocate resources depending on past experience on association
resources.
Another principle to be used is that, the cost of an item is what you offer up to get it. In
this situation, pla...