ECO 111 Macroeconomics Assignment When people discuss “the economy,” they generally mean three economic statistics: gross domestic
product, unemployment and inflation. Changes in these variables can have significant impact on
people’s ability to satisfy unlimited wants with limited resources. The economy proceeds through
periods of growth and recession. Prices may rise dramatically or increase more moderately.
Unemployment may rise above the natural rate of unemployment or even fall below this rate. All of
these changes can have a significant impact on people’s standard of living.
Write a term paper describing the current state of the economy. Define the three main macroeconomic
variables. State their current values by going to the government web sites where they are published.
Evaluate these using course discussed material to determine the current state of the economy using the
aggregate expenditure (AE) model. Recommend appropriate fiscal policy to return the economy to long
run equilibrium. ECO 111 Macroeconomics Assignment
The paper will be scored based on appropriate use of vocabulary, accurate analysis of the current state of
the economy and the resulting appropriate evaluation of correct fiscal policy recommendation. You are
also to include a hand written graph if the AE model showing full employment equilibrium compared to
the current, actual state of the economy based on your analysis.
It will be due on Monday, November 30. If the project is not completed, the student will be given an “F”
grade for the course. 10 points will be deducted from the grade every session the project is late.
Chapters to especially refer to are:
19 GDP Measuring Total Production
20 Unemployment and Inflation
21 Economic Growth, Financial System and Business Cycles
23 Aggregate Expenditure and Output
24 Aggregate Demand and Aggregate Supply
27 Fiscal Policy ECO 111 Macroeconomics Assignment