Apply macroeconomic concepts to current and personal economic events and decisions.
In addition to writing about macroeconomic concepts, it’s equally important to be able to convey your understanding of these concepts by communicating them to others. In the workplace you might do this by writing briefs (like you did for Assignment 1), creating presentations, or writing reports for your manager or team.
For this Final Report assignment, you can build off your previous economic brief and selected industry from Assignment 1, or you can select another industry such as Finance and Insurance, Health Care, or Manufacturing, and examine one of the macroeconomic indicators or policies below:
GDP growth
Unemployment rates
Inflation rates
Interest rates
Imports and exports
Government fiscal policy and issues related to taxation, government spending, and budget deficits
FED (central bank) monetary policy and issues related to the FED’s mission to stabilize the economy
Use Microsoft Word to prepare a Final Report that is a minimum of two to three (2-3) pages long in which you:
1. Introduce your selected industry with a brief one-paragraph introduction. Refer to the NAICS (North American Industry Classification System) to review the details about your industry.
2. Assess your selected industry’s relative size and growth rate in the economy.
These macroeconomic resources will help you find the size and growth rate of your industry in the U.S. economy and/or relative to GDP:
• Real GDP – Select Section 1, then table 1.1.6 (select MODIFY to change the year range and frequency). Data is from Bureau of Economic Analysis (bea.gov).
• % Change in Real GDP – Select Section 1, then table 1.1.1 (select MODIFY to change the year range and frequency). Data is from Bureau of Economic Analysis (bea.gov).
• GDP by Industry – Steps:
1. Select “Interactive Data.”
2. Select “Industry Data Tables.”
3. Select “Begin Using the Data.”
4. Select “Gross Output by Industry.”
5. Select “Real Gross Output by Industry (A) (Q).”
6. Select “Quarterly” or “Annual.”
7. Select “Next Step.” Data is from Bureau of Economic Analysis (bea.gov).
• % Change in GDP by Industry – Steps:
1. Select “Interactive Data.”
2. Select “Industry Data Tables.”
3. Select “Begin Using the Data.”
4. Select “Gross Output by Industry.”
5. Select “Percent Changes in Chain-Type Quantity Indexes for Gross Output by Industry (A) (Q).”
6. Select “Quarterly” or “Annual.”
7. Select “Next Step.” Data is from Bureau of Economic Analysis (bea.gov).
3. Identify one newsworthy macroeconomic indicator or policy (e.g., GDP, unemployment, inflation rates, interest rates, government taxation and spending decisions, and/or FED decisions) that the industry should monitor and explain why it’s important and how it might impact your selected industry.
These resources are available to help you measure and track macroeconomic indicators and outcomes of macroeconomic policies.You’ll use one or more depending on the macroeconomic indicator selected.
• Unemployment rates – Data is from Bureau of Labor Statistics (bls.gov).
• Inflation rates as measured by the Consumer Price Index (CPI). Data is from Bureau of Labor Statistics (bls.gov).
• % Change in Real Exports and Imports – Select Section 4, then table 4.2.1. (Select MODIFY to change the year range and frequency.) Data is from Bureau of Economic Analysis (bea.gov).
• Government receipts, expenditures, and savings – Select Section 3, then table 3.1 for total government and table for 3.2 for federal government. (Select MODIFY to change the year range and frequency.) Data is from the Bureau of Economic Analysis (bea.gov).
• FED Funds Interest Rates. Data is from Trading Economics (trading economics.com).
4. Describe a recent trend in the macroeconomic indicator or policy. Include a graph, chart, or table that illustrates the observed trend.
5. Summarize how you think this industry will perform in the future. Provide support for your rationale.
