Macro Student Assessment Project

ECO201 – Student Assessment Project Guidelines

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                                            Revised 7/02/20

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.



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GDP per Capita

Debt to GDP ratio

Gross National Savings

National Debt

Unemployment Rate

Central Bank monetary policies

Balance of Payments

Exchange rate to US Dollar

Trade Restrictions

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.
    1. Will you use discretionary policy or rules based policies? — Why?
    2. 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.
    3. 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.

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