• Analyze how fiscal policy affects interest rates and aggregate demand. (Explain the theory behind the concept and then address how it can be applied to the case of your selected organization -- how does fiscal policy affect your organization?)

User Generated

nyuneg1982

Economics

Description

Our organization is Apple.


Purpose of Assignment

Students will example the model economists use to analyze the economy's short-run fluctuations--the model of aggregate demand and aggregate supply. Students will learn about some of the sources for shifts in the aggregate-demand curve and the aggregate-supply curve and how these shifts can cause fluctuations in output. Students will be introduced to actions policymakers might undertake to offset such fluctuations. Students will see why there is a temporary trade-off between inflation and unemployment, and why there is no permanent trade-off.

Assignment Steps

Resources: National Bureau of Economic Research

Select an organization your team is familiar with or an organization where a team member currently works.

Create a slide Microsoft® PowerPoint® presentation to present to the organization's Executive Committee.

Include the following items:

Analyze how fiscal policy affects interest rates and aggregate demand. (Explain the theory behind the concept and then address how it can be applied to the case of your selected organization -- how does fiscal policy affect your organization?)

Make use of Speaker Notes for explanations.

Format your presentation consistent with APA guidelines.

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Explanation & Answer

Attached.

How Fiscal Policy Affects Interest
Rates and Aggregate Demand
Student’s name
Institution
Date

Fiscal Policy


Keynesian theory argues that increased government expenditures and lower
taxes stimulate demand and vice versa.



According to Cardoso-Costa and Lewis (2017), aggregate demand is an
economic measurement of the sum of all final goods and services produced in
an economy, expressed as the ...


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