Short-Run Economic Fluctuations
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.
Resources: National Bureau of Economic Research
Select an organization (Google) your team is familiar with or an organization where a team member currently works.
Create a 3-slide Microsoft® PowerPoint® presentation to present to the organization’s Executive Committee.
Include the following items:
- Explain how monetary policy affects interest rates and aggregate demand.
Format your paper consistent with APA guidelines.