Purpose of Assignment
Students will example the model economists use to
analyze the economy’s short-run fluctuations–the model of aggregate demand and
aggregate supply. Students will learn about some of the sources for shifts in
the aggregate-demand curve and the aggregate-supply curve and how these shifts
can cause fluctuations in output. Students will be introduced to actions
policymakers might undertake to offset such fluctuations. Students will see why
there is a temporary trade-off between inflation and unemployment, and why
there is no permanent trade-off.
Assignment Steps
Resources:National Bureau of Economic Research
Selectan
organization your team is familiar with or an organization where a team member
currently works.
Create a 3 slide
Microsoft® PowerPoint® presentation to present to the organization’s Executive
Committee.
Include the following
items:
Evaluate why the inflation-unemployment trade-off
disappears in the long run.
