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 http://www.nber.org/links/gov.html
Select a company you are familiar with or a company where a team member currently works.
Create a 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. (Only 2 slides are needed for this topic)
Format your paper consistent with APA guidelines.