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Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

Part 1

Describe the following terms in your word.

·         Gross domestic product (GDP)

·         Real GDP

·         Nominal GDP

·         Unemployment rate

·         Inflation rate

·         Interest rate

Part 2

Consider the following examples of economic activities:

·         Purchasing of groceries

·         Massive layoff of employees

·         Decrease in taxes

Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

Write a 700- to 1,500-word paper summarizing the results.

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Discuss within your Learning Team how and why the U.S.’s deficit, surplus and debt have an effect on the following:

·         Tax payers

·         Future Social Security and Medicare users

·         Unemployed individuals

·         University of Phoenix student

·         The United State’s financial reputation on an international level

·         A domestic automotive manufacturing (exporter)

·         An Italian clothing company (importer)

·         GDP

Write a 750- to 1,050-word paper summarizing the results.

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Assume that you have been appointed as the Speaker of the House. You must deliver a speech about the current state of the U.S. macroeconomy to a number of amateur reporters who are unfamiliar with economics.

Prepare a 750- to 1,050-word speech in simple terms and concepts that focus on international trade and foreign exchange rates.

Integrate  a summary of your answers to the following questions and cite external research to further justify your facts:

·         What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.

·         What are the effects of international trade to GDP, domestic markets and university students?

·         How do government choices in regards to tariffs and quotas affect international relations and trade?

·         What are foreign exchange rates? How are they determined?

·         Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all other countries?

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Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a government’s wealth and fiscal policy?

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Why are trade agreements important for the various countries involved? How is international trade related to the U.S. standard of living as opposed to the standard of living of a small industrial nation or a developing nation? How does international trade affect a country’s standard of living? What impact does it have on the way Americans live life, spend, consume, and so on?

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Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.

Prepare a 350- to 1,050- word paper detailing the findings of your discussion.

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Your boss has chosen you to give a presentation to a number of foreign officials regarding the United States Federal Reserve System. These officials are very interested in doing business in the United States, but they would like to learn more about the Federal Reserve and how it operates.

Develop a 10- to 15-slide Microsoft^® PowerPoint^® presentation.

Address the following questions and include a notes page which contains the write-up portion to each question:

·         What are the factors that would influence the Federal Reserve in adjusting the discount rate?

·         How does the discount rate affect the decisions of banks in setting their specific interest rates?

·         How does monetary policy aim to avoid inflation?

·         How does monetary policy control the money supply?

·         How does a stimulus program (through the money multiplier) affect the money supply?

Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust

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How does a government budget deficit affect the economy? Identify two periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods?

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