Short-Run Economic Fluctuations

Short-Run Economic Fluctuations

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

Create a 15- to 20-slide Microsoft® PowerPoint® presentation that will be presented to the organization’s Executive Committee. The presentation should cover the following items:

• Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
• Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply.
• Explain how monetary policy affects interest rates and aggregate demand.
• Analyze how fiscal policy affects interest rates and aggregate demand.
• Evaluate why policymakers face a short-run trade-off between inflation and unemployment.
• Evaluate why the inflation-unemployment trade-off disappears in the long run.

Cite a minimum of 3 peer-reviewed sources not including your textbook.

Money and the Prices in the Long Run and Open Economies

The organization’s strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five years.  It is your responsibility to determine how the U.S economy during this five year period will impact such an aggressive growth plan. To do so, you should:

Develop a 2,100-word 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 can be achieved and provide support.

Use a minimum of 3 peer-reviewed sources from the University Library.