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Purpose of Assignment
The purpose of this is assignment is for students to review the basic principles of economics and the concepts of the circular flow model, showing the connectivity of society’s economic players and the flow of goods and money within an economy. Students will learn how society allocates its scarce resources and how economists are both scientists and policymakers. Students will define GDP and CPI and how they are calculated.
Assignment Steps
Resources: National Bureau of Economic Research; Principles of Macroeconomics: Ch. 1, 2, 3, 4, 5, 6, and 7
Scenario: Your organization’s CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing a report to introduce some of these thoughts and principles.
Develop a 1,050-word report to the members of the strategic planning committee explaining the following information:
What principles society uses to allocate its scarce resources
Using the circular flow model, explain the flow of money and resources in an economy.
A country’s gross domestic product (GDP) and how it is defined and calculated. Be sure to include the differences between real GDP and nominal GDP
How the consumer price index (CPI) is defined and constructed? Research the current CPI and inflation rate of US. And explain the importance of CPI on the cost of living measurement.
Format the assignment consistent with APA guidelines.
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