ECO 372 Week 2

Individual Fundamentals of Macroeconomics Paper

Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

Part 1

Describe the following terms in your word.

Gross domestic product (GDP)

Real GDP

Nominal GDP

Unemployment rate

Inflation rate

Interest rate

Part 2

Consider the following examples of economic activities:

Purchasing of groceries

Massive layoff of employees

Decrease in taxes

Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

Write a 700- to 1,500-word paper summarizing the results.

Learning Team Weekly Reflection - Economic Forecasting Paper

Develop a list of resources you might use to gather historical economic data as well as economic forecast data.

Explain how and why each source is valuable and useful.

Identify any quantitative or qualitative forecasting factors contained in the sources.

Discuss this weeks objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.

Write a 350- to 1,050-word paper that details your team's findings.

Discussion Questions

Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?

Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes?

In your opinion, which two determinates currently have the greatest impact on aggregate demand and supply? Justify your response with an example.

What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer. How might contractionary and expansionary fiscal policies affect your organization?