. EVALUATE THE HEALTH OF THE U.S. MACROECONOMY IN TERMS OF KEY ECONOMIC MEASURES.

ES2560: Project Page 1 PROJECT DESCRIPTION Project Introduction: The project will require you to collect economic indicators for the most recent year and analyze them. You will then discuss the strengths and weaknesses of using GDP to measure economic activity. Course Objectives Tested: 1. Explain key macroeconomic terminology. 2. Apply supply and demand theory to analyze product, money, and foreign exchange markets. 3. Create and use economic graphs and numerical models to analyze and propose solutions for macroeconomic problems

. 4. Evaluate the health of the U.S. macroeconomy in terms of key economic measures. 5. Analyze unemployment, inflation, and economic growth. 6. Compare and contrast the classical and Keynesian macroeconomic models. 7. Evaluate discretionary actions the government takes to achieve national economic goals using fiscal and monetary policy. 8. Outline the fundamental functions of money, rationalize the existence of banks, and describe the functions and structure of banking. 9. Identify and analyze the actions the Federal Reserve System can take to stabilize the U.S. monetary and financial system. 10. Describe the international dimensions of macroeconomic policy and the benefits of international trade. 11. Analyze the policies that lead to economic growth. 12. Use the ITT Tech Virtual Library to research selected topics. 13. Working within a group, make an oral and visual presentation of research findings. ES2560: Project Page 2 PROJECT SUBMISSION PLAN Project Part Description/Requirements of Project Part Evaluation Criteria 1 Analyze Macroeconomic Indicators This part of the project is divided into two sections, evaluation of U.S. economy and comparison of U. S. economy with other economies. Work with your group members to perform the following tasks: I. Evaluation of U.S. Economy 1. Within your group, research the ITT Tech Virtual Library or credible government Web sites for the four macroeconomic indicators for the U.S. for a period of 10 years between 1970–present: GDP—nominal and real Trade Balance Personal Income and Spending Manufacturing and Trade Inventories and Sales 2. Analyze the findings and comment on the economic growth of the U.S. during the period selected by you. Support your findings with proper rationale and calculations, wherever necessary. In your Evaluation Criteria: Using the attached rubric, you’ll be graded on the following criteria: Criteria Points Assigned Points Earned Did you correctly address the question in Project Part 1? 10% Did you share your data with other groups? 3% Did you use correct grammar and spelling? 2% ES2560: Project Page 3 Project Part Description/Requirements of Project Part Evaluation Criteria analysis, include the following: Explanation of why you choose that period Application of the Keynesian equation Shares of consumption, investment, and government spending as a part of GDP. Use nominal GDP for these calculations. Biggest contributor in GDP. Consumer price index (CPI) and the GDP deflator using the chain-type price index for GDP. The inflation rate. II. Comparison of U.S. Economy with Other Economies Choose three countries that are considered “High Income Countries,” three countries that are considered “Middle Income Countries,” and three countries that are considered “Low Income Countries.” The United States should be one of the “High Income Countries” you choose. For each of the nine countries selected, find the following ES2560: Project Page 4 Project Part Description/Requirements of Project Part Evaluation Criteria data: o Real GDP per person o Adult literacy rate (total) o Life expectancy at birth (total) o Infant mortality rate (per 1,000 live births) o Physicians (per 1,000 people) o Income share held by the highest 10% of the population o Income share held by the lowest 10% of the population After collating the required data, answer the following questions: What was the level of inflation during the time period relative to the history of inflation in the United States? What were the driving factors behind this trend? How does United States compare to the other two countries you chose in the high-income group, middle-income group, and lowincome group? ES2560: Project Page 5 Project Part Description/Requirements of Project Part Evaluation Criteria In which measures does the United States compare poorly against other countries and in which does it fare better? In general, what is the relationship between real GDP and other measures of well-being? Is real GDP a reasonable measure of standard of living? Why or why not? Collaborate with your group to prepare a PowerPoint presentation that shows all calculations/analyses leading to a conclusion about macroeconomic indicators in the U.S. and its comparison with other economies. Your presentation should include answers to the questions asked in the above two sections. Remember to adhere to APA guidelines, standards, and formatting. Submission Requirements: Submit your PowerPoint presentation to your instructor for evaluation. Your presentation should contain at least 10 slides containing all required information. ES2560: Project Page 6 Project Part Description/Requirements of Project Part Evaluation Criteria Assigned: Week 2 Due: Week 7 Grading Weight: 15% 2 The Final Paper Perform the following tasks: 1. Update your PPT based on the feedback shared by the instructor in Week 8. 2. Add presentation comments in the Notes section of the PPT. Submission Requirements: Submit the final PPT by the end of Week 10. Assigned: Week 8 Due: Week 10 Grading Weight: 5% Evaluation Criteria: Using the attached rubric, you’ll be graded on the following criteria: Criteria Points Assigned Points Earned Did you correctly address the question in Project Part 1? 4% Did you use correct grammar and spelling? 1% (End of Project Description)