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Business Cycle
1. As a business person, it is important to be aware of the current state of the economy. Watching or reading the news can help keep you informed. Locate an article written within the last week from the popular press or reputable blog that discusses the economy's current stage in the business cycle. Summarize the main ideas of the article.
2. What are some of the damaging effects inflation has on an economy? What would be a monetary policy prescription to reduce or eliminate inflation? How would inflation affect your business or a business you are familiar with?
3. Economic growth, as measured by increases in real GDP per capita, is a goal for most countries. This is often interpreted as an increase in economic welfare for citizens. How would you evaluate this assertion? If there are reasons to dispute it, why is it a nearly universally recognized goal? Are there better methods for measuring economic welfare? How would you measure it?
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