Assignment:
• Answer each section of the three sections in a short essay (whole paper should be 2 pages)
• Must include references page.
• ONLY USE THE SOURCES PROVIDED
Topic 1: Recessions and Business Activity
The Recession, Wal-Mart Style, Stephanie Rosenbloom
Automakers Rebound as Buyers Go Big, Mike Ramsey
The Great Recessions Effect on Entrepreneurship, Scott Shane, Economic Commentary, Federal Reserve Bank of Cleveland.
Key Questions:
• How do recessions impact firms in general (consider how consumers are impacted and how this may translate to sales/revenue impacts on firms)?
• How might recessions benefit some firms? Consider the Wal-Mart example above. Can you think of companies or industries that may actually thrive during a recession?
• How might firms recover from recessions? Consider the auto industry above. Can you think of companies or industries that emerged from the recession with growth during the expansion?
• What is the impact of recessions on entrepreneurship? How does a recession impact entrepreneurs?
Topic 2: Fiscal Policy
Fiscal Policy, David Weil, The Concise Encyclopedia of Economics
U.S. Fiscal Policy: Reality and Outlook (2016), Fernando Martin, Economic Synopses.
Key Questions:
• What is fiscal policy? How does the government use fiscal policy to influence the economy?
• What are the main expectations regarding U.S. fiscal policy according to the article by Fernando Martin?
• What are your thoughts on fiscal policy? What should the U.S. do going forward? Be sure to support your answer.
Topic 3: Monetary Policy
Federal Open Market Committee
GDP, Bureau of Economic Analysis
Employment Situation, Bureau of Labor and Statistics (see Employment Situation Summary Table )
CPI, Bureau of Labor and Statistics (see the CPI news release summary)
Calendars, Federal Open Market Committee (see the Statement:PDF from the Oct. 31-Nov. 1 meeting)
Key Questions:
• How does the Federal Open Market Committee determine monetary policy?
• Provide a brief analysis of U.S. GDP (examine current GDP and recent changes).
• Provide a brief analysis of the U.S. employment situation (examine current employment data and recent changes).
• Provide a brief analysis of the CPI (examine current price levels and recent changes).
• Provide a brief summary of the Federal Reserve press release.
• If you were to provide a recommendation regarding monetary policy based on your analysis above, what would you suggest? Would you agree or disagree with the recent statements by the Federal Open Market Committee? Why?