Macro Student Assessment Project
ECO201 – Student Assessment Project Guidelines
1) Summarize the trend of each of the chapter “main homework topics” in relation to if each is trending towards a “recessionary” or “inflationary” period.
GDP per Capita
Debt to GDP ratio
Gross National Savings
Central Bank monetary policies
Balance of Payments
Exchange rate to US Dollar
2) Based upon your analysis of #1 decide if your country is either in a:
a)recessionary gap….economy is operating below its full capability/capacity
b)inflationary gap...economy is growing too fast & prices are increasing
- Discuss where on the “business cycle” your country is at the present.
- Use AS-AD graph to show where your country’s economy is at the present.
- Identify how you intend to improve the economy of your country by prescribing fiscal and monetary policy changes you would make.
- Will you use discretionary policy or rules based policies? — Why?
- Discuss how you will use Fiscal Policy (government purchases, tax laws, etc.) to achieve more economic growth and full employment. Also explain any possible drawbacks/negative reactions to these policies.
- Discuss how the Central Bank’s Monetary Policy actions will pursue its dual mandate of low unemployment and price stability. Also explain any possible drawbacks/negative reactions to these policies.
List references utilized (2 minimum).
Submission can be either Word, Excel, PowerPoint or Posted Video UR