CS 3

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Week 6 Case Study: Macroeconomic Analysis: Unemployment and Inflation

Overview

A high unemployment rate in any economy is a symptom of dysfunctionality in the economy. People need income to be able to consume, and consumption leads to production and production leads to higher demand for labor (employment), so unemployment is a crucial macroeconomic issue that confronts all modern economies. A lower unemployment rate, however, is not the end of the problem. The type of employment and the price of labor (wages) have to be sufficient in order for consumption (which is the major component of GDP) in the economy to be healthy. If wages are low or if the prices in the economy are high, consumption would be low and thus, production and demand for labor would be low, too. High unemployment rate, high part-time employment rate for economic reasons, low wages, and high inflation could have negative effects on economic growth.

Assignment Description

In this assignment, you need to identify only two main issues related to unemployment and/or inflation. You can choose two unemployment related issues, or two inflation related issues, or one unemployment related issue and one inflation related issues. Then you are going to study their past trends, provide an overview of their current status, and provide solutions to overcome them. You will use data, articles, experts’ opinions, and government reports to draw a clear picture of the current unemployment and inflation issues.

Some areas you might consider are the following (you could also choose different topics).

· Part-time employment rates for economic reasons

· Unemployment rates among young college graduates

· Unemployment rates by gender

· Unemployment rates among Black and Hispanic communities

· Low supply of labor (professionals) in certain industries

· High supply of labor in education

· Low wages by profession and their causes

· Low demand for labor in some industry (you could choose whatever industry you wish)

· Low wages in some parts of the country

· High unemployment rate among workers with high school diploma or less

· The increase in the price of housing and its effect on investment

· The increase in the price of healthcare and education and their effect on consumption

Your research needs to be structured with consistent and clear thoughts. It also needs to be supported by actual data. Your results need to be based on solid facts. Your conclusion and recommended solution need to be thorough and based on your findings and understanding of macroeconomic challenges and macroeconomic policies.

Writing Style (APA) and Page Number Requirements

Font Type: Times New Roman or Arial

Font Size: 12

Spacing: Double

Number of Pages: Three to five pages, not counting the separate Title page and the separate References page

Structure and Requirements

· Title Page

· Title of the paper

· Name of the author

· E-mail address of the author

· Class name

· Professor’s name

· Date

· Introduction

Your introduction needs to include the following.

· Include a clear definition of unemployment and inflation and how and why they occur and rise in the economy.

· Briefly provide your understanding of the relationship between GDP growth and/or decline, high/low unemployment, and high/low inflation rates.

· Include a brief description of the two unemployment or inflation-related issues that you are going to address in this paper and their importance. Basically, why do you think they are important to research and resolve?

· Data

Use tables, graphs, and figures to support your argument. You can find the latest unemployment and inflation data at www.bls.gov (Bureau of Labor Statistics).

· Obtain data from at least three credible sources (not Wikipedia) to provide facts about unemployment, inflation, their growth pattern, and their current status.

· Obtain historical data (10 years or more) about GDP growth rate (percentage).

· Obtain historical data (10 years or more) about the two issues you are going to address, as well as data about their current status.

· Analysis

This section needs to contain the following discussions based on the data that was gathered and your understanding of unemployment, inflation, and GDP.

· Unemployment and Inflation: Discuss the trends of unemployment and inflation rates over the past 10 years and provide your objective analysis of the changes in unemployment and inflation rates and the current rates. Place extra emphasis on the periods where unemployment or inflation was either too high or too low. Also state the effect of the high and low rates on GDP.

· Two Issues: Discuss the two unemployment or inflation-related issues you selected. Provide an overview of their trends and use facts to highlight the major changes in their trends and their current statuses. State the reason(s) why you believe these two issues represent a challenge for the economy.

· Reflection and Critical Thinking

Connect all of the dots together by relating your above analysis to other areas in the macroeconomy. Basically, you will link changes in unemployment, inflation, and GDP to one another and how they impacted each other during periods of economic decline (recessions) and periods of economic growth (expansion).

· Solution

· State which macroeconomic policy (monetary policy or fiscal policy) might resolve the issues you highlighted above, and state how this policy could be implemented and why it would solve these problems.

· Finally, provide your own solution. Basically, answer the following question.

What would you do to solve the macroeconomic issues you addressed if you were in charge of the U.S. economy? State why.

· Reference List

Use at least three professional sources to support your argument. The references need to be in APA format.

To learn more about APA format, click (and hold your CTRL key) on the link below or copy/paste the link into your browser address bar.

APA Resources:

http://libguides.devry.edu/c.php?g=181472&p=1194156

Revised 03/04/2020

Week 6_Case Study Rubric

–25 Points

–40 Points

–35 Points

35

30–35 Points

20 –25 Points

30

25–30 Points

15–20 Points

30

25–30 Points 20-25 Points 15–20 Points 10–15 Points 0–10 Points

0

Week 6 Unemployment and Inflation Analysis: Case Study Grading Rubric

Requirements

Possible Points

Points Earned

Criteria and Points

Excellent

Competent

Fair

Poor

Unacceptable

Introduction and Writing Style: Exhibits effective content and writing, including APA. Provides a clear definition of unemployment and inflation as well as a clear overview of the current unemployment and inflation status. Clearly describes the two issues the paper addresses (CO E).

25

Provides sufficient overview of current issues using sources in APA format

Provides some overview of current issues status using sources in APA format

Attempts to provide overview of current issues but sources are not properly cited

Insufficient overview and sources are not properly cited

Does not address unemployment and inflation

2

0

15–20 Points

10-15 Points

5–10 Points

0–5 Points

Data: Appropriate level of content and data was used and data was current, relevant, and sufficient. Analysis and synthesis skills were applied to include a broad range of material, connecting theory with real data and/or experiences (COs E and F).

40

Sufficient historical and current data obtained from credible sources

Current data obtained from credible sources, but data does not address all variables

Data does not address all required macroeconomic variables

Data does not address all required macroeconomic variables and data are not current

Does not address the required macroeconomic variables

35

30

25 –30 Points

20 –25 Points

0–20 Points

Analysis: The creative process was applied where student formulated an identified challenge and was able to draw conclusions to develop scholarly thinking about problem or concept assigned (COs F and H).

Sufficient analysis of trends and causes of changes in all required variables

Sufficient analysis of trends and causes of changes in some required variables

Lacks clarity and does not highlight causes of changes in required variables

Does not provide clear and cohesive analysis of trends and does not address causes of changes in variables

Does not provide analysis of required macroeconomic variables

25–30 Points

15 –20 Points

0–15 Points

Reflection and Critical Thinking: Case study shows critical thinking through the application of concepts learned in the module (CO F).

Shows critical thinking through the application of concepts learned in the module

Shows critical thinking through the application of concepts learned in the module but does not fully link variables to each other

Shows some understanding of variables but lacks clarity and cohesiveness in relating those variables to one another

Provides some idea about the variables but lacks understanding of their relationship and effect on one another

Does not demonstrate understanding of required variables

20-25 Points

10–15 Points

0–10 Points

Solution: Clear and relevant solutions provided that demonstrate understanding of macroeconomic variables and macroeconomic polices (COs E and F).

Includes a strong, original central idea that provides a unified trajectory of inquiry and analysis that is sustained throughout

Includes a central idea with few tangents and diversions that unifies the argument but lacks clarity or creativity

Attempts to form a cohesive idea but lacks concrete focus and unification of key components

Has no unifying central idea to link key components of the argument together

Does not address this competency

Total Points Earned

160

Revised: 03/20/2020