Apply macroeconomic principles to current news items

timer Asked: Jun 23rd, 2015

Question description

To do this assignment, be on the lookout for news that interest you.  Accordingly, identify 5 news items. The news items could be current or could be historical.  You may also use individual private situations that you are familiar with.  The only thing is that the news and or the situation must be macroeconomic related.  In other words, Federal Reserve decisions, government spending, inflation, unemployment, government debt, taxation, etc. are acceptable macro issues but someone’s purchases, labor disputes, pricing strategies, healthcare, education, etc. are (normally) not since they are micro issues.  

Use the following format:




In the explanation part, try to explain the news.  What it is, how did it happen, and why is it happening.  You may not be able to fully answer all these questions, but try.  Go beyond the news and see the situation from an economist’s perspective.  You may give a very brief background or description.  But you do not need to rehash the news and the details. This is not a research project, you do not need to get deeply involved with the opposing sides (if any) or the debate.  Just simply explain the news by reaching into your “economics tool bag” and apply them to the situation.  I want YOUR understanding of the situation!  Each news analysis should be about 250 words.  

As an example let’s assume that you heard that the Federal Reserve is buying government securities.  State the source and date.  Then in the explanation try to explain what is being proposed, how it will be implemented, and why it is suggested.  Then, try to analyze the money market and investment situation after the implementation of this purchases. 

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