ECON 210 Unit 1 Individual Project Introduction to Macroeconomic Theory

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus.NOTE: All submission posting times are based on midnight Central Time.

In economics, they say a picture is worth a thousand words. Below, you will find two scenarios. Your assignment is to discuss the situation by writing the solutions, and then show the solutions and how you got here in one or more graphs or flowcharts.

Scenario One

Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. A few companies probably come to mind. Pick a major coffee retailer, and then contemplate what has been happening to both the supply and demand for this product.

Next, analyze the following scenario that deals with what happened in the coffee industry at the beginning of the last decade:

In the early part of the last decade, there was an overproduction of coffee. The price dropped so low that producers' costs were higher than the market price. The reason this happened was that market prices became high before this, and the supply of coffee increased substantially. In the meantime, demand for coffee and everything else remained the same.

Coffee prices, as a supply input, went down. In the meantime, gourmet coffee houses began appearing, which began charging a premium for coffee in the period of decreasing prices. Gourmet coffee houses tend to open in high-rent areas and cater to higher income consumers. Because of the change they created for taste and preferences and the higher income market, the gourmet coffee houses had a win-win in a period of falling wholesale prices and increasing retail prices.

• Explain the changes in the supply and demand creating a supply and demand curve based on the above information.
• In this graph, be sure to demonstrate how these changes affected the price and quantity levels of supply and demand.
• Based on this analysis, how were coffee retailers faring in the marketplace?

Scenario Two

In this next scenario, start your discussion by examining the differences between the definitions of the macroeconomics and microeconomics. Next, discuss how the concepts of supply and demand relate to (1) microeconomics and (2) macroeconomics.

For you to demonstrate understanding of supply and demand from the perspective of microeconomics versus macroeconomics, pick 2 of the 10 scenarios below and discuss the following questions:

• Is the scenario a macroeconomic or microeconomic example of supply and demand?
• Is this impacting supply or demand?   
• Is this example going to experience a shift or a movement of supply or demand?
• As a result of this change, what happened to equilibrium price and quantity?

The 10 examples for you to consider are as follows:

1. After Hurricane Katrina, what happened to the price of fish?
2. After the development of the microchip, what happened to the price of computers?
3. After the government raised tariffs on imported cheese, what happened to the price of domestic cheese?
4. Polyester suits have become trendy again. What happens to their price?
5. Internet auction sites are becoming more popular, and people are using them more and more.
6. A new health report came out that said red wine lowers cholesterol.
7. The government raises taxes.
8. Inflation increases.
9. Immigration laws are relaxed.
10. The government increases spending.

ECON 210 Unit 2 Individual Project Dissecting the GDP Equation

Part I

Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. Discuss the following:

• What is Country A’s GDP?
• What is the composition of GDP by percentage?
• What is the GDP per capita?
• How does this relate to Keynesian economics?

Part II

Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release:

• Where is the United States in the business cycle?
• What is the real GDP today?
• What is the largest component of GDP?
• What is the smallest component of GDP?
• What is the fastest growing component of GDP, and why?
• What components of GDP were involved in the change from last month to this month?
• What is the price index today?
• What caused the change?

Please submit your assignment.

Reference

U.S. Department of Commerce Bureau of Economic Analysis.(2014). U.S. economic accounts. Retrieved from http://bea.gov/

For assistance with your assignment, please use your text, Web resources, and all course materials.

ECON 210 Unit 3 Individual Project Fiscal Policy and Government Spending

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that all the variables be timed perfectly.

Part 1: Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year.

• Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same.
• What is the first action you would take as the president? As the chairman of the Fed? Why?
• What would be your subsequent steps?
• Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs. 

Include the following concepts in your discussion:

• Demand and supply of money
• Interest rates
• The Phillips curve
• Taxation
• Government spending
• Wages
• Costs of inflation
• The multiplier and the tax multiplier
• The idea of tax rebates to stimulate the economy

Part 2: Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

EXTRA PART

Part B

Deliverable Length:1,500–2,000 words

The financial crisis of 2008 has caused macroeconomists to rethink monetary and fiscal policies. Economists, financial experts, and government policy makers are victims of what former Fed chairman Alan Greenspan called a “once in a century credit tsunami”—in other words, nobody saw it coming.

Because you are now the expert in macroeconomics, your friends keep asking you your thoughts on what caused the financial crisis and whether the United States is going in the right or wrong direction with its current policies.

Focus specifically on the following:

·         Monetary policy

·         What monetary policies do you think caused the crisis?

·         What were the effects of the policies implemented in reaction to the crisis?

·         Do you think the solutions worked in the short term? In the long term?

              Fiscal policies

·         What fiscal policies do you think caused the crisis?

·         What were the effects of the fiscal policies implemented in reaction to the crisis?

·         Do you think the solutions worked in the short term? In the long term?

Make sure you include the following concepts in your analysis:

·         Interest rates

·         GSAs

·         The financial services industries (CDOs, CMOs, the stock market, credit flows, money markets, etc.)

·         Tax rebates

·         Aggregate demand

·         Stimulus

·         TARP

·         Government debt and deficit

·         Inflation

·         Unemployment

·         GDP

·         Globalization

·         Foreign investment

In your opinion, did government intervention help or harm the economy before and after the panic of 2008? Would you have done anything differently?

Make sure you use research to back up your argument.

 

ECON 210 Unit 5 Individual Project Contemporary Economic Issues

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Deliverable Length:  800–1,000 words

The financial crisis of 2008 caused macroeconomists to rethink monetary and fiscal policies. Economists, financial experts, and government policy makers are victims of what former Fed chairman Alan Greenspan called a “once in a century credit tsunami”.

Since then, there have been various legislative and policy strategies considered and implemented to ‘fix’ the problems that allowed the crisis. The true question is whether we are headed down the same path, and if the ‘victims’ of the 2008 crisis have done anything to shift the tide. Review this clip, and review your own additional research, then share your thoughts on what caused the financial crisis and whether the United States is going in the right or wrong direction with its current policies. In explaining your position, be sure to include cited research that supports your consideration, recommendations for safeguards going forward, and what role, if any, government should play.

Your discussion should include reflections on both monetary and fiscal policies, clearly noting which caused/remedied the crisis. Make sure you include the following concepts in your analysis:

• Interest rates
• The financial services industries (CDOs, CMOs, the stock market, credit flows, money markets, etc.)
• Tax rebates
• Stimulus
• TARP
• Government debt and deficit
• Inflation
• Unemployment
• Immigration
• GDP 

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

ECON 210 Unit 1Discusion

Reminder: Initial Discussion Board posts due by Wednesday, responses due by Sunday

Students will be expected to post their first initial discussion board posting by Wednesday of each week. Discussion posts will be graded and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Students are expected to post their responses to peers by Sunday. NOTE: All submission posting times are based on midnight Central Time.

This is a terrific time to meet your fellow classmates, to learn a little bit about them, and for them to learn about you. Please introduce yourself in the Introductory Discussion Board, which can be accessed via the Discussion Board link to the left. If you are not sure how to get started, begin by discussing your background and why you are in school. Also, feel free to mention your proudest accomplishments, and offer advice to others. Say something unique or fun about yourself!

You also may upload a picture, by clicking "Post File" when you respond to the Discussion Board. JPEG images work well, but it will accept other formats, too.

Get started today. For purposes of your attendance, please post your introduction into this discussion by Wednesday.

You are encouraged to participate in this thread throughout the term.

ECON 210 Unit 4 Discussion

Primary Discussion Response is due by Wednesday (11:59:59pm Central), Peer Responses are due by Sunday (11:59:59pm Central).

Primary Task Response: Within the Discussion Board area, write 200–400 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Choose a developing country, and discuss its economic growth in the last 2–3 years. Discuss whether you believe the country is on a good course of economic growth and whether the macroeconomic policies are helping achieve this growth. Include the following information:

• Identify its growth in output per capita and in population growth.
• Is it an open or closed economy?
• The unemployment rate is an important economic indicator.  Please review this video and discuss how your chosen country’s unemployment rate compares to that of America.
• Identify its comparative advantage and whether it is involved in trade.
• Identify the country's type of economy: market, command, or mixed economy.
• Is the country's foreign exchange overvalued or undervalued? Has the central bank intervened in the foreign exchange market on behalf of the country's currency valuation?

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

• What did you learn from your classmate's posting?
• What additional questions do you have after reading the posting?
• What clarification do you need regarding the posting?
• What differences or similarities do you see between your posting and other classmates' postings?

For assistance with your assignment, please use your text, Web resources, and all course materials.