Money
and the Prices in the Long Run and Open Economies
The organization’s strategic
plan you wrote about in Week 2 calls for an aggressive growth plan, requiring
investment in facilities and equipment, growth in productivity, and labor over
the next five years. It is your responsibility to determine how the U.S
economy during this five year period will impact such an aggressive growth
plan. To do so, you should:
Develop a 2,100-word economic outlook forecast that
includes the following:
·
Analyze the history of changes
in GDP, savings, investment, real interest rates, and unemployment and compare
to forecast for the next five years.
·
Discuss how government
policies can influence economic growth.
·
Analyze how monetary policy
could influence the long-run behavior of price levels, inflation rates, costs,
and other real or nominal variables.
·
Describe how trade deficits or
surpluses can influence the growth of productivity and GDP.
·
Discuss the importance of the
market for loanable funds and the market for foreign-currency exchange to the
achievement of the strategic plan.
·
Recommend, based on your above
findings, whether the strategic plan can be achieved and provide support.
Use a minimum of 3 peer-reviewed sources from the
University Library.
