Macroeconomic performance is judged by three broad measures: the inflation rate, the rate of unemployment, and the growth rate of output and income. The macroeconomic policies that a government pursues affect (and are reflected in) that performance. Governments choose their policies in accordance with their objectives for price stability, employment stability, growth, competitiveness, equity, or their beliefs about the desirable size of the government and national security. The ultimate effects may be different for various participantsâ€“households, nonfinancial firms, financial firms, the government, and foreign participants.
EACH STUDENT SHOULD ANSWER THE FOLLOWING QUESTIONS:
1. The Past. How did the macroeconomic performance of the U.S. economy from the mid-1990s to 2002 affect each sector?
2. The Present. Assess the state of the macro-economy today.
3. The Future.
a. What should the goals of macroeconomic policy be for the next four years? Justify your choices.
b. What specific policies, that is, monetary, fiscal, and international trade policies, should the government pursue to achieve these goals?
Each student will write an economic report. Each report should be 3 to 5 pages in length. The paper should be double spaced using Times New Roman and 12 font. The report should be in APA format. There should be a reference page for all references used in writing the report. Each student should use the same economic indicators throughout their report. Wikipedia is not a reliable source of information and should not be used.
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