Offered Price $33.00

ECON545: Project 2—Macroeconomic Analysis

Question # 00019613
Subject: Economics
Due on: 10/31/2014
Posted On: 07/10/2014 12:27 PM

Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Feedback Score:

Purchase it
Report this Question as Inappropriate

ECON545: Project 2—Macroeconomic Analysis

The Macroeconomic Paper tests your ability to apply economic principles to a business decision considering the impact of macroeconomic variables. Select one situation from the items outlined below: A to D. Complete the paper on the selected situation as specified below. The completed paper is a professional report and is due in Week 6 (260 Points). See the grading rubric at the end of this document. Be sure to use the DeVry library to find data, and avoid questionable sources, such as Wikipedia.

Each of the scenarios has a list of Macroeconomic areas you are to address, with sources, in your answer. Briefly you are to research and show how these apply to your scenario: GDP growth rate (20 points), the business cycle (30 points), fiscal policy and level of unemployment (50 points), monetary policy and interest rates (50 points), international trade (40 points), and demographics (20 points).

Situation A

Rick, your friend, runs a small manufacturing plant that produces parts for the auto industry. Rick is thinking of expanding his operations to meet the increasing demand from car manufacturers. Hearing of your taking this course in business economics, he asks you for advice on how to go about making the expansion decision.

At first you are reluctant to give investment advice, but then you happen to read the piece “U.S. Auto Sales Estimates Cut as Confidence Slows Rebound” on page 634 of the textbook. You suddenly realize that Rick needs to take a number of macroeconomic variables into consideration for the expansion decision. You decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Rick with the most informed advice possible.

Situation B

Your neighbor Cindy wants to start a contracting business for installing solar panels. She has heard of the cost savings that households and businesses can make each year by installing solar panels on their roofs. Cindy has also heard of government incentives for installing solar panels. Being concerned about the environment and wishing to reduce pollution, Cindy thinks installing solar panels also serves a good social purpose. But she does not want to risk her life savings on a venture that might not succeed or become profitable enough. After hearing from you about taking this course in business economics, she decides to ask you for advice.

At first you are hesitant to give investment advice. Then you read the piece “Postal Service Considering Cutting 120,000 Jobs” on page 668 of the textbook. You realize there are more pieces to the decision than Cindy is considering. You decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Cindy with the most informed advice possible.

Situation C

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying four gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even further with high demand from India and China. Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station. But before buying the gas stations, he decides to ask for your advice because you are taking this course in business economics.

You happened to read the piece “Bank Lending Signals a Strengthening Economy” on page 856 of the textbook. Cousin Edgar needs financing for his new business, but you realize there are more macroeconomic factors he needs to consider in timing his decision. You decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Cousin Edgar with the most informed advice possible.

Situation D

After hearing of your taking this course in business economics, Uncle Dan has e-mailed you asking for advice on his 100-acre corn farm. He mentioned how, after 30 years of growing corn, he wishes to leave that commodity’s market and enter a more profitable market instead. He is thinking of subdividing his land and building homes and shops. He reckons he could make a good profit by selling the homes and renting the shops.

Before you can find time to answer Uncle Dan’s e-mail, you read the piece “Will the Fed’s New Policies Revitalize the Housing Market?” on page 896 of the textbook. Recognizing the costs and risks for Uncle Dan in making the switch, you decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You decide to educate yourself about macroeconomics so that you can provide Uncle Dan with the most informed advice possible.

Macroeconomic Paper as a Professional Report

Your paper should be organized into five parts as listed below.

  1. Title Page: Name, class, and date

  2. Introduction to situation but do NOT copy the scenario.Briefly summarize the situation and identify the macroeconomic issue(s) to be decided from the perspective of the organization.

  1. Relevant Economic Principles: Determinants of Demand, Supply, etc. and Relevant Data

Identify the variables that are critical in addressing the issue(s). Gather and present the relevant data on the variables by searching the DeVry Online Library. Ask a librarian for help if needed. Use in-text citation to report the source(s) of the data. Graphs may be included here.

  1. Recommendations and Economic Justification

Formulate and present your recommendations for addressing the issue(s) based on the relevant data and economic principles identified above. Justify your recommendations in terms of the economic impact on those affected.

  1. References

List the full references for at least five sources alphabetically in APA format.

Grading Rubric


Points earned



Paper Presentation


Good format, citations, lack of spelling errors, etc.; correct Title page and Reference page

Relevant Data:

GDP, Business Cycle, International, Monetary Policy, Fiscal Policy, Demographics


GDP (20 points)

Business Cycles, Unemployment, Inflation (30 points)

International (40 points)

Monetary Policy and interest rates (50 points)

Fiscal Policy and unemployment (50 points)

Demographics (20 points)



What are your recommendations explained by your analysis?



Tags analysis 2macroeconomic project econ545 points busine policy advice situation page demographics unemployment international monetary fiscal macroeconomic cycle data paper rates rate decide research level trade growth economy cindy economic terms relevant decision

Tutorials for this Question
Available for

ECON545: Project 2—Macroeconomic Analysis

Tutorial # 00019045
Posted On: 07/10/2014 12:29 PM
Posted By:
Best Tutors for school students, college students jia_andy
Expert tutors with experiences and qualities
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview ……
Econ_545_Project_2_-_Macroeconomic_Analysis_paper.docx (739.93 KB)
Preview: available xxx Gasoline xxxxxx Edgar would xxxx a reasonable xxxxxx of xxxxxxx xx he xxxx up his xxxxxxxx at Gasoline xxxxxxx The xxxxxx xx Gasoline xxxxx also play x significant role xx the xxxxxxxx xxxxxx of xxxxxx Since the xxxxxx of Gasoline xxxxx depend xx xxxx factors xxxx where it xxx been imported xxx also xxx xxxxxxxxxxxxx tariffs xxx tax structure, xxxxxxxxx the market xxxxxxxxxxx quantity xxx xxxxx of xxxxxxxx will be xxxxxxxx by foreign xxxxxx of xxxxxxxx xx countries xxxx as India xxx China Supply xxx demand xxxxxxxx xx Gasoline xxx be seen xx the graph xxxxxxxxxxxxxxxxxxxxxxxxxxxx we xxx xxxxx that xxx prices of xxxxxxxx have been xxxxxx over xxx xxxx as xxxxx is high xxxxxxxxxxx of fuel xx the xxxxxxxx xx has xxxx creating a xxxxxx in the xxxxxxx which xxxx xxxxxx all xxxxxxxxxx in the xxxxxxx The prime xxxxxx behind xxxx xxxxxx is xxx setting up xx low interest xxxxx by xxx xxxxxxx Reserve xxx the most xxxxxxxxx is sub-prime xxxxxxxxx They xxx xxxxxxxx more xxxxx just to xxx to work xxxxx week, xxx xxx thought xx using excess xxx to go xx vacation xx x shopping xxxxx is enough xx make you xxxxxxx According xx xxx latest xxx in U xx the figure xxx $16 xx xxxxxxxx in xxxx The population xx U S xxxxxx 9 xxxxxxx xx 2012 xxx GNI per xxxxxx in U x in xxxx xxx $52,340and xx has been xxxxxx thereafter Therefore, xx shows xxxx xxx country xx coming out xx the 2008 xxxxxx leaving x xxxxxxxx impact xx the growth xx business units xx U x xxxxxxxx Wor141 xx 16393 (Bank, xxxxx Bank Data xxxxx 2014)Moreover, xxxxxxx xx the xxxxxxx school enrollment xxxxx it shows xxx in xxxx xxxxxx U x has very xxxx literacy rate xxxxx can xxxx xxxx of xxx stationary like xxxx pencils, notepads, xxx also xx xxx store xxxxxxxxx after the xxxxxxxx crisis of xxxxx U x xxxxxx has xxxxxxx a lot xx people lost xxxxx confidence xx xxxxx and xx the investment xxxxxxx most of xxxx withdrew xxxxx xxxxx from xxx banks which xxxx the Fed xx reduce xxx xxxxxxxx rate xx a result, xxxx of the xxxxxxx investments xxxx xxxx in x S from xxxxxx The demand xxx U x xxxxxxx fell xxxx making it xxxxx less At xxxx time, xxx xxxxxx for xxxxxxxx also fell xxxx but still xxxxxx did xxx xxxx visiting xxx Gasoline stations xxx they just xxxxxx their xxxxxx xx visits xx the station xxxxxx can still xxx the xxxxx xx convenience xxxxx set up xx Edgar Hence, xxx business xxxxx xx least xxxxxxxx by the xxxxxxxx downturn in xxx economy xxx xxxx reason xxx sub-prime mortgage xxxxxxx downturn of xxx dollar xxx xxx much xxxxxxx to the xxxxxx for housing xxxxx Banks xxxxxxx xxxxx at xxx prime mortgages xxx people having xxxxx income xxxxxx xxxx also xxxx to afford xxx housing loan xxx when xxxx xxxx not xxxx to repay xxx loan, all xxx banks xx x S xxxxxxxx into lack xx funds In xxxxx to xxxxx xxx similar xxxxxxxxx in future, xxx banks lend xx the xxxxx xx some xxxxxxxxxx security Therefore, xxxxx would have xx face xxxx xxxxxxx while xxxxxxx loan.....
Purchase this Tutorial @ $33.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable