Case Study: Macroeconomic Challenges: Unemployment and Inflation This assignment is broken in to three parts. · Part I (Intro and Data): Due in Week 5 · Part II (Analysis and Solution): Due in Week 6...

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Econ wk 5/6


Requesting same expert that completed the last assignment. Please complete an APA paper with at least 5 different cited professional references. Must include 7 pages of content. The guidelines are attached. The paper will include part I and part II. Please disregard the instructions regarding a powerpoint presentation and part III, only the 7 page paper is needed.




Case Study: Macroeconomic Challenges: Unemployment and Inflation This assignment is broken in to three parts. · Part I (Intro and Data): Due in Week 5 · Part II (Analysis and Solution): Due in Week 6 · Part III (Presentation) Overview A high unemployment rate in any economy is a symptom of dysfunctionality in the economy. People need income to consume, and consumption leads to production, and production leads to higher demand for labor (employment), so unemployment is a crucial macroeconomic issue that confronts all modern economies. A lower unemployment rate, however, is not the end of the problem. The type of employment and the price of labor (wages) have to be sufficient in order for consumption (which is the major component of GDP) in the economy to be healthy. If wages are low or if the prices in the economy are high, consumption would be low and thus, production and demand for labor would be low, too. High unemployment rate, high part-time employment rate for economic reasons, low wages, and high inflation could have negative effects on economic growth. Assignment Description In this assignment, you need to identify two main issues related to unemployment and inflation. Then you are going to study their past trends, provide an overview of their current status, and provide solutions to overcome them. You will use data, articles, experts' opinions, and government reports to draw a clear picture of the current unemployment and inflation issues. Some areas you might consider are (you could also choose different topics) the following. · Part-time employment rates for economic reasons · Unemployment rates among young college graduates · Unemployment rates by gender · Unemployment rates among Black and Hispanic communities · Low supply of labor (professionals) in certain industries · High supply of labor in education · Low wages by profession and their causes · Low demand for labor in some industry (you could choose whatever industry you wish) · Low wages in some parts of the country · High unemployment rate among workers with high school diploma or less · The increase in the price of housing and its effect on investment · The increase in the price of healthcare and education and their effect on consumption Your research needs to be structured with consistent and clear thoughts. It also needs to be supported by facts and data. Your results need to be based on solid facts. Your conclusion and recommended solution need to be thorough and based on your findings and understanding of macroeconomic challenges and macroeconomic policies Important Note: The case study itself is a one assignment that is broken into two parts over two weeks. Part I is due in Week 5 and Part II (including Part I from Week 5) is due in Week 6. The final and complete case study submission that is due in Week 6 must contain the portion of the assignment that was due in Week 5. In other words, the final assignment that is due in Week 6 must contain the following sections: (1) Introduction (2) Data (3) Analysis (4) Reflection (5) Solution (6) References. The References should include a minimum of five sources in the final Week 6 submission. As an example, 3 sources could have been used in the Week 5: Part I assignment and 2 or more additional sources could have been used for the Week 6: Part II assignment, equaling 5 or more total professional sources in the final combined References page. Note that all references used for Week 5: Part I should be included in your Week 5 submission and in your Week 6 submission. Part I: Due in Week 5 Writing Style and Page Number Requirements Font Type: Times New Roman or Arial Font Size: 12 Spacing: Double Number of Pages: The final combined Part I and Part II case study should be six (6) to eight (8) pages total, not counting the Title page and References page Structure and Requirements · Title Page · Title of the paper · Name of the author · E-mail address of the author · Class name · Professor's name · Date · Introduction Your introduction needs to include the following. · Include a clear definition of unemployment and inflation and how and why they occur and rise in the economy. · Also provide your understanding of the relationship between economic growth (GDP), high/low unemployment, high/low Inflation, high/low wages, and the way they impact one another. · Include an overview of the current unemployment and inflation rates in the economy using facts and statics. · Include a brief description of the two unemployment or inflation-related issues that you are going to address in this paper and their importance. Basically, why do you think they are important to research and resolve? · Data · Obtain data from at least five credible sources (not Wikipedia) to provide facts about unemployment, inflation, and wages and their growth pattern and their current status. · Obtain data about changes in unemployment and inflation rates for a period of 10 years. · Obtain historical data (10 years or more) about GDP growth rate (percentage) and Real GDP volume (in dollar value). · Obtain data about the changes in the real wages since the year 2005 (before the recession). · Obtain historical data (10 years or more) about the two issues you are going to address, as well as data about their current status. · Use tables, graphs, and figures to support your argument. You can find the latest unemployment and inflation data at www.bls.gov (Bureau of Labor Statistics). · Reference List Use at least five (5) professional sources to support your argument for the Parts I and II combined - Minimum of two (2) sources for Part I. The references need to be in APA format. To learn more about APA format, click on the link below. APA Resource Part II: Due in Week 6 Writing Style and Page Number Requirements Font Type: Times New Roman or Arial Font Size: 12 Spacing: Double Number of Pages: Six (6) to eight (8) pages that include Part I and Part II combined. Note that this 6-8 number of pages is not counting the Title page and References page that are also required. Structure and Requirements · Analysis This section needs to contain the following discussions based on the data that was gathered and your understanding of unemployment, inflation, GDP, aggregate supply, and aggregate demand, monetary policy, and fiscal policy. · Unemployment: Discuss the trends of unemployment rates over the past 10 years and provide your objective analysis of the changes in unemployment and the current rates. Place extra emphasis on the periods where unemployment was either too high or too low (higher or lower than the natural rate of unemployment). · Inflation: Discuss the trends of inflation rates over the past 10 years and their relationship with GDP growth and decline. Highlight the years that inflation was either higher or lower than usual and state the reason(s). Also state the effect of the high and low rates on GDP. · Wages: Discuss the changes in real wages by major professions or industries and highlight the periods wages declined or rose and state the reason for this unusual change. · Two Issues (your choice): Here you will need to discuss the two unemployment or inflation-related issues. Provide an overview of their trends and use facts to highlight the major changes in their trends and their current statuses. State the reason(s) why you believe these two issues represent a challenge for the economy. · Reflection and Critical Thinking This section needs to cover the following areas. · Connect all of the dots together by relating your above analysis to other areas in the macroeconomy. Basically, you will link changes in unemployment, inflation, wages, and GDP to one another and how they impacted each other during periods of economic decline (recessions) and periods of economic growth (expansion). · Highlight the causes of the two issues that you selected and how they impact the economy negatively and why they do need to be addressed by policy makers. · Solution · State which macroeconomic policy (monetary policy or fiscal policy) that might resolve the issues you highlighted above, and state how this policy could be implemented and why it would solve these problems. · Finally, provide your own solution. Basically, answer the following question. What would you do to solve the macroeconomic issues you addressed if you were in charge of the U.S. economy? State why. · Reference List Use at least five (5) professional sources to support your argument. The references need to be in APA format. To learn more about APA format, click on the link below. This reference list should include the references used in Part I that was due in Week 5 as well as the references used for Part II, for a minimum of five sources total from Parts I and II combined. APA Resource Part III: Due in Week 6 Presentation Submit a presentation of your Week 6 Macroeconomic Challenges Case Study. Review the requirements below and follow the steps explained to create a presentation with an audio component. Presentation Requirements Your completed presentation should contain both text and audio recordings. Text Component · Prepare five to seven PowerPoint slides. · The slide should be attractively designed and easy to understand. · The slides should effectively combine text and visual elements (graphs and tables). · Avoid using long blocks of text. Instead, use bullets and short phrases to highlight your ideas. · Use visual elements to provide evidence and make the presentation visually more interesting. Typical Presentation Organization · Title Slide: Title of project, your name, the name of the class, and the date of submission · Introduction/Overview Slide: A brief statement of the two macroeconomic variables that you selected and the main points that you are going to discuss · A Few Body Slides: Provide an overview of the trends and current statuses of the two variables using data and/or graphs. Provide a brief description of the main challenges and or opportunities related to the two variables that you selected. · Conclusion Slide: Your proposed solutions to resolve issues related to the status of your two variables and/or solutions to improve these two variables · References Slide: The list of the references you used to conduct your research Audio Recording · Record a 5- to 7-minute presentation, explaining the content of each slide. · Your narration will be attached to each of your PowerPoint slides, which is commonly referred to as a Narrated PowerPoint. · Audio does not have to be attached to the title slide or references slide but is expected to be included for all of the other slides (introduction/overview, body slides, and conclusion). How to Record Audio in a PowerPoint Slide 1. Open your PowerPoint Presentation. 2. Click on Insert at the top left corner of your presentation. 3. Click on Audio at the top-right corner of your presentation and select Record Audio. 4. To start recording, click on the recording button (the square with the red dot in
Answered Same DayNov 13, 2021

Answer To: Case Study: Macroeconomic Challenges: Unemployment and Inflation This assignment is broken in to...

Komalavalli answered on Nov 20 2021
141 Votes
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Case Study: Macroeconomic Challenges: Unemployment and Inflation
Introduction:
Unemployment rate is a useful measure to reflect the underutilization of resources. It also reflects an economies inability to generate employment for those persons who are willing to work and actively seeking for an employment. According to International Labour Organisation (ILO) Unemployment rate is calculated by expressing the number of unemployed persons
as a percentage of total number of persons in a labour force (3).
Inflation is defined as a persistent increase in prices of goods and services. It is associated with growth of an economy. Inflation rate is measured by the annual change in price of PCE (personal consumption expenditure) Economic growth is affected by the existence of high inflation rate(2). Policy makers of Federal Reserve evaluate change in inflation by monitoring different price indexes. Federal open market committee aims for an annual increase of 2% in inflation rate. In long run this will help to attain maximum employment and stability in price levels. Low inflation rate will improve the purchasing power of the individuals and making them better off. It also helps us to keep the long term interest rate at moderate level (1). On the other hand high inflation rate will make individuals worse off by reducing their purchasing power, unemployment rates also be higher. Overall high inflation rate will affect the growth of an economy.
Relationship between Economic growth (GDP), unemployment, Inflation and wages
Business cycle explains the relationship between inflation, wages, economic growth and unemployment (5). Business cycle has four stages; they are Boom, Recession, depression and expansion. Boom stage indicates maximum output production with high GDP growth rate and inflation rate will be near to the target rate of 2%, the rate of unemployment will be low resulting in high demand for labor which in turn increases the wage rate. Recession stage indicates inefficiency in output production with low GDP growth rate and inflation rate will be higher than the targeted rate of 2%, the rate of unemployment will be high resulting in low demand for labor in the market which in turn decreases the wage rate(4).
Overview of Current economic condition:
    Growth rate of GDP was 2% in 3rd quarter in 2019 and this was grew by 0.5% compared to the previous quarter same year. US have quarterly GDP per capita of $ 14,504 which higher by $1276 compared to same quarter in last year. Unemployment rate in October 2019 was 3.6%, and it was increased by 0.1% compared to the previous month of same year. Inflation rate for all urban consumer in September 2019 were increased by 1.7 % compared to the same month in last year (6-8).
Economic problems associated with a low inflation rate:
    Low inflation rate is an indication of economic problems; this may be connected with the weakness in the economy. During great recession in 2008 unemployment rate was 10% in October 2009 and the inflation rate was around -2.1%. This high unemployment rate associated with low inflation rate lowers the purchasing power .It led to less investment in business and lowers the consumer demand, as a consequence of these prices of goods and services were reduced in subsequent periods. Overall the economic growth worsened during these periods (7-12).
Part time employment for economic reasons:
Part time employment has become major issue like unemployment in the economy. During the expansionary stage of business cycle 2001-2007 part time unemployment person seeking for full time employment was around 4.4 million persons and it expanded to 7.1million persons at the end of great recession. During great recession many people were laid off from their full time work because fall in investment in production of output due to financial crisis. Those who are willing to work for full time job are involuntary worked for part time, since there is a cut in supply of full time jobs. Labors in the full time job market had made a decision that instead being unemployed without earnings , it’s better to work in part time jobs at least by earning some amount to take care of their financial needs. Following recession unemployed rate was high among men compared to women .During October 2009 the unemployment rate among men was 11.1 percent, while the unemployment rate among women was 9 % in November, which is 2% points lower compared to...
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