Question

NEWS BROADCAST ON THE ECONOMY
Create A News Report About the U.S. Economy. The News Segment Needs to Cover The Following Economic Reports:
 Status of the Economy
o What is the current status of the economy?
 Topics: GDP, inflation rate, unemployment, or production & growth, etc.
 Economic Decision Making
o Use economic theories presented in class and discuss things an individual should consider when becoming an entrepreneur.
 Topics: Opportunity cost, supply/demand, comparative advantage, 10 principles of economics, etc.
 Economic News
o What’s trending in social media?!
 Discuss any current news story that can relate to ANY economic concept we’ve covered.
 Economic Advice:
o Give advice on tools people or firms can use when choosing to invest
 Topics: Stocks, bonds, mutual funds, assets, risks, interest rates, etc.
 Economic Policy Debates:
o Pick one of the Six Debates over Macroeconomics Policy. Discuss the pros and cons of the policy and how it connects to your overall news segment.

Six Debate Questions:
Should Monetary and Fiscal Policymakers Try to Stabilize the Economy?
Should the Government Fight Recessions with Spending Hikes Rather than Tax Cuts?
Should Monetary Policy Be Made by Rule Rather than by Discretion?
Should the Central Bank Aim for Zero Inflation?
Should the Government Balance It's Budget?
Should the Tax Laws Be Reformed to Encourage Saving?

Answer 1

Solution

Here I would consider the case of India as a n example

Status of the economy :

The GDP of India has increased by 7% in the year 2018-19.The GDP of India for 2018 is USD 2.716 Trillion.It presently holds that the tag of fastest growing economy in the world.

The labor force of India is expected to reach 160-170 million by the year 2020.Presently,the undemployment rate of India stands at 6.1%.Usually countries which are developing are having huge populations.Resources are limited but needs are unlimited / huge.

Currently India has a population of . In December 2018,the consumer inflation rate is 2.19% .Since this being the election year,it is expected to increase to average of 3.88 over the next year. Generally,during the election years,the inflation increases as more money comes into circulation as the black / un-accounted money of the politicians is taken out and spent by them for their canvassing during the elections and also during the final year of rule by the present govt. and just before the fresh elections,they increase the govt.expenditure on the general public to gain their votes in the upcoming elections

Th forecast of GDP growth for FY 2020 is reduced due to several factors such as loss in momentum of growth of industrial output,lower than normal monsoon and the continued distress in the agriculture sector.

Economic Decision making

An entrepreneur should take into the account various factors before starting a business .Some of them are as below

Opportunity Cost - He/She should make the best choice among the available ones so that the opportunity cost of the present choice is the least.

Supply / Demand - He/She should analyze the supply and demand of various markets pertaining to different businesses before zeroing upon a particular business ,market segment,target customer and the type of product.

Comparative advantage - He/She should analyze the comparative advantage of India and also gain knowledge on the export & import policies of India so that they can get an idea of the potential of exports from and imports to India in that particular sector.

The govt. is coming out with innovative financial instruments like an inflation linked treasury bonds and gold bonds which offer good returns.The market is easily waiting for these financial instruments.

Since the inflation rate is projected to increase ,so I would suggest the investors to move their capital from debt securities (bonds,etc.,) as they offering fixed return to more instruments like inflation linked treasury bonds ,equity etc.,

Debate question

Should monetary policy be made by rule rather than discretion?

Monetary policy is the means by which the central bank controls various things like inflation,unemployment and national output in an economy by regulating the money supply in the economy.

Yes, the monetary policy should be made a rule rather than discretion because it is an important economic policy which effects the economy as a whole.The monetary policy is intended to control the important parameters like inflation,unemployment and national output of an economy.So,it should be made a rule by an autonomous body like the Federal Reserve

Hope this solution helps !! Please comment in case of any further queries !!