Money and the Prices in the Long Run and Open Economies

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nyuneg1982

Economics

Description

Purpose of Assignment

Week 3 will help students develop an understanding of what money is, what forms money takes, how the banking system helps create money, and how the Federal Reserve controls the quantity of money. Students will learn how the quantity of money affects inflation and interest rates in the long run, and production and employment in the short run. Students will find that, in the long run, there is a strong relationship between the growth rate of money and inflation. Students will review the basic concepts macroeconomists use to study open economies and will address why a nation's net exports must equal its net capital outflow. Students will demonstrate the relationship between the prices and quantities in the market for loanable funds and the prices and quantities in the market for foreign-currency exchange. Student will learn to analyze the impact of a variety of government policies on an economy's exchange rate and trade balance.

Assignment Steps

Resources: National Bureau of Economic Research

Develop a 12- to 15-slide Microsoft® PowerPoint® presentation for economic outlook forecast that includes the following:

  • Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years.
  • Discuss how government policies can influence economic growth.
  • Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.
  • Describe how trade deficits or surpluses can influence the growth of productivity and GDP.
  • Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.
  • Recommend, based on your above findings, whether the strategic plan you talked about in your week 2 presentation can be achieved and provide support.

Make use of Speaker Notes for explanations.

Use a minimum of three peer-reviewed sources from the University Library.

Format your presentation consistent with APA guidelines.

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Explanation & Answer

Attached.

Name
Institution

Introduction
❖ An economic outlook forecast relates to the economic analysis of a country projected a few years into

the future.
❖ It evaluates the impact of fiscal and monetary policies on the growth and development of the

economy
❖ Key concepts reviewed in an economic forecast include GDP, government policies, monetary and

fiscal policies, as well as inflation and loan interest
❖ The following sections reviews the construct of economic outlook analysis within a country context.

Analysis of 5 Year Changes in Economic Indexes
❖ Historical changes in key economic indexes can be used to give a factual economic forecast

❖ Examples of these economic indexes include changes in GDP, real interest rates, and unemployment.

❖ The table shows the changes reported in five years in the US by the three economic indexes
2014

2015

2016

2017

2018

GDP

17,393.1 B

18,120.71 B

18,624.48 B

Real Interest Rates

0.63%

0.27%

0.67%

0.42%

0.54%

Unemployment

6.6%

5.7%

4.9%

4.87%

Forecast of Key Economic Indexes
❖ The historical records of economic indexes show a trend on how each index performed annually

❖ The GDP shows a growing trend, and as such, the forecast in the next five years should be higher

❖ Unemployment shows a dropping trend and as such, the forecast in th...


Anonymous
Just what I needed…Fantastic!

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