Assignment:
Topic 1: Recessions and Business Activity
The Recession, Wal-Mart Style, Stephanie Rosenbloom, New York Times, June 6, 2009:
Automakers Rebound as Buyers Go Big, Mike Ramsey, Wall St. Journal, January 3, 2014:
The Great Recessions Effect on Entrepreneurship, Scott Shane, Economic Commentary, Federal Reserve Bank of Cleveland, March 24, 2011:
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 No. 10:
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
CPI, Bureau of Labor and Statistics
Calendars, Federal Open Market Committee
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?