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BUSN 5620 Current Economics Analysis For Aggregate Demand

tag 0 Download 2 Pages / 497 Words tag 28-01-2020
  • Course Code: BUSN 5620
  • University: Webster University

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  • Country: United States


There are Internet Questions with this assignment after the following problems.

Problem 1
From March 2009 to 2013, the U.S. stock market more than doubled in value. How might this have affected aggregate demand? What happens to aggregate demand when the stock market plunges?

Problem 2
Why was Walmart worried about the 2013 payroll tax hike (News Wire Fiscal Restraint,” p. 249)?

Problem 3

If the MPC was 0.9:
(a) how much did consumer spending decline initially in response to the 2013 expiration of the payroll tax cut (i.e., tax hike) (News Wire “Fiscal Restraint,” p. 261)?
(b) What was the ultimate decline in aggregate demand after all multiplier effects?

Internet Question
Question 1
For this question, you will need to find data on two different websites that you have probably worked with in the past - the Bureau of Economic Analysis website and the Bureau of Labor Statistics. Make one table for parts a and b below.
a.Use the Bureau of Labor Statistics website to collect data on the inflation rate (using CPI) and the unemployment rate for the five previous years.

b.Use the Bureau of Economic Analysis website to collect data on real GDP (in chained 2000 dollars) for the same five years.

c.Use the AD/AS framework to describe the four annual changes in your table.

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