Purpose of Assignment
The purpose of this is assignment is for students to review the basic principles of economics and the concepts of the circular flow model, showing the connectivity of society's economic players and the flow of goods and money within an economy. Students will learn how society allocates its scarce resources and how economists are both scientists and policymakers. Students will define GDP and CPI and how they are calculated.
Assignment Steps
Resources: Course textbook, Principles of MacroeconomicsMacroeconomicsby Gregory Mankiw. Gregory Mankiw. Do NOT use any other source.
Scenario: Your organization's CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing a report to introduce some of these thoughts and principles. Keep in mind that your audience is not familiar with economic terms and concepts.
Develop a minimum of 1,000 words report to the members of the strategic planning committee explaining the following information in separate sections with appropriate headings
- How economists are both scientists and policymakers.
- What principles society uses to allocate its scarce resources.
- Using the circular flow model, explain the flow of money and goods in an economy.
- How the economy coordinates society's independent economic actors in a market.
- Define gross domestic product (GDP) and explain how it is calculated.
- How the consumer price index (CPI) is constructed and why it is an imperfect measurement of the cost of living.
Format the assignment consistent with APA guidelines, including having an introduction and conclusion.
Cite and Reference your paper according to APA guidelines.
Mankiw, N.Gregory. (2015). Principles of Macroeconomics, 7th Edition, Stamford, CT. Cengage Learning.