Short-run economic fluctuations
Create a 12- to 15-slide Microsoft® PowerPoint® presentation that will be presented to the company’s Executive Committee (that is, to your ECO/372 class during Workshop 4). The presentation should cover the following items:
- Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
- Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply.
- Explain how monetary policy affects interest rates and aggregate demand.
- Analyze how fiscal policy affects interest rates and aggregate demand.
- Evaluate why government policymakers face a short-run trade-off between inflation and unemployment.
- Describe why the inflation-unemployment trade-off disappears in the long run.