ECON545: Project 2—Macroeconomic Analysis

The Macroeconomic Paper tests your ability to apply economic principles to a business decision considering the impact of macroeconomic variables. Select one situation from the items outlined below: A to D. Complete the paper on the selected situation as specified below. The completed paper is a professional report and is due in Week 6 (260 Points). See the grading rubric at the end of this document. Be sure to use the DeVry library to find data, and avoid questionable sources, such as Wikipedia.

Each of the scenarios has a list of Macroeconomic areas you are to address, with sources, in your answer. Briefly you are to research and show how these apply to your scenario: GDP growth rate (20 points), the business cycle (30 points), fiscal policy and level of unemployment (50 points), monetary policy and interest rates (50 points), international trade (40 points), and demographics (20 points).

Situation A

Rick, your friend, runs a small manufacturing plant that produces parts for the auto industry. Rick is thinking of expanding his operations to meet the increasing demand from car manufacturers. Hearing of your taking this course in business economics, he asks you for advice on how to go about making the expansion decision.

At first you are reluctant to give investment advice, but then you happen to read the piece “U.S. Auto Sales Estimates Cut as Confidence Slows Rebound” on page 634 of the textbook. You suddenly realize that Rick needs to take a number of macroeconomic variables into consideration for the expansion decision. You decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Rick with the most informed advice possible.

Situation B

Your neighbor Cindy wants to start a contracting business for installing solar panels. She has heard of the cost savings that households and businesses can make each year by installing solar panels on their roofs. Cindy has also heard of government incentives for installing solar panels. Being concerned about the environment and wishing to reduce pollution, Cindy thinks installing solar panels also serves a good social purpose. But she does not want to risk her life savings on a venture that might not succeed or become profitable enough. After hearing from you about taking this course in business economics, she decides to ask you for advice.

At first you are hesitant to give investment advice. Then you read the piece “Postal Service Considering Cutting 120,000 Jobs” on page 668 of the textbook. You realize there are more pieces to the decision than Cindy is considering. You decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Cindy with the most informed advice possible.

Situation C

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying four gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even further with high demand from India and China. Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station. But before buying the gas stations, he decides to ask for your advice because you are taking this course in business economics.

You happened to read the piece “Bank Lending Signals a Strengthening Economy” on page 856 of the textbook. Cousin Edgar needs financing for his new business, but you realize there are more macroeconomic factors he needs to consider in timing his decision. You decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Cousin Edgar with the most informed advice possible.

Situation D

After hearing of your taking this course in business economics, Uncle Dan has e-mailed you asking for advice on his 100-acre corn farm. He mentioned how, after 30 years of growing corn, he wishes to leave that commodity’s market and enter a more profitable market instead. He is thinking of subdividing his land and building homes and shops. He reckons he could make a good profit by selling the homes and renting the shops.

Before you can find time to answer Uncle Dan’s e-mail, you read the piece “Will the Fed’s New Policies Revitalize the Housing Market?” on page 896 of the textbook. Recognizing the costs and risks for Uncle Dan in making the switch, you decide to research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You decide to educate yourself about macroeconomics so that you can provide Uncle Dan with the most informed advice possible.

Macroeconomic Paper as a Professional Report

Your paper should be organized into five parts as listed below.

1.       Title Page: Name, class, and date

2.       Introduction to situation but do NOT copy the scenario. Briefly summarize the situation and identify the macroeconomic issue(s) to be decided from the perspective of the organization.      

3.       Business Cycles, Unemployment, Inflation, International – Comparative Advantage, Exchange Rates, Trade, Etc., Monetary Policy and Interest Rates, and Fiscal Policy and Unemployment Identify the variables that are critical in addressing the issue(s). Gather and present the relevant data on the variables by searching the DeVry Online Library. Ask a librarian for help if needed. Use in-text citation to report the source(s) of the data. Graphs may be included here.

4.       Recommendations and Economic Justification

Formulate and present your recommendations for addressing the issue(s) based on the relevant data and economic principles identified above. Justify your recommendations in terms of the economic impact on those affected.

5.       References

List the full references for at least five sources alphabetically in APA format.

6.       Page Length – 8 to 12

Grading Rubric

Final Paper

Focus of the Final Paper

The Final Research Paper should address a topic that is connected to the content of this course (elements and requirements of a valid contract; issues related to real and personal property; intellectual property; employment law; and/or, international law and the global marketplace.)  This paper should focus on a legal issue or situation that relates to a business environment or activity with a focus on the legal impact technology has on this issue. Ideally, this topic would concern a matter that you have experienced or that you have knowledge of; however, this not a requirement, only a suggestion. Apply the legal concepts and ethical considerations discussed in this course to your chosen topic. At a minimum this paper should include: 

• A detailed description of the topic.
•  An analytical discussion of the legal issues that are involved. This would entail examining the issue from different viewpoints.
• A discussion of ethical considerations (Remember: What is legal may not be ethical).
• A discussion of the legal impact technology has on this issue.
• A well defined and logically stated argument to support your position. This would include any suggestion or ideas for improvement in this area of law.
• Four research sources

The paper also needs to meet the writing requirements that are set out below under “Writing the Final Research Paper.”

Writing the Final Paper

The Final Paper:
1.    Must be eight to ten double-spaced pages in length, and formatted according to APA style
2.    Must include a title page with the following:

a.    Title of paper

b.    Student’s name

c.    Course name and number

d.    Instructor’s name

e.    Date submitted

3.    Must begin with an introductory paragraph that has a succinct thesis statement.
4.    Must address the topic of the paper with critical thought. That is, what is your response to the content, either positive or negative, and then defend your position. If multiple options/alternatives/positions are present and are being rejected you must also defend the reasons for rejecting an option
5.    Must end with a conclusion that reaffirms your thesis.
6.    Must document all sources in APA style
7.    Must include a separate reference page, formatted according to APA style

Write a two to three (2-3) page paper discussing the roles and responsibilities of directors in a corporation.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.