Resources: National Bureau of Economic Research; Principles of Macroeconomics: Ch. 1, 2, 3, 4, 5, 6, and 7 – Mankiw, N. Gregory (2015). Principles of Microeconomics (7th ed.). Stamford, CT: Cengage Learning.
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:
• How economists are both scientists and policymakers and what principles society uses to allocate its scarce resources.
• Using the circular flow model, explain the flow of money and goods in an economy. Provide as many concrete and specific real world examples as feasible.
• How the economy coordinates society’s independent economic actors: two basic methods are government plans and market prices.
• A country’s gross domestic product (GDP) and how it is defined and calculated.
i. Go to FRED https://fred.stlouisfed.org/ and prepare a chart showing quarterly, seasonally adjusted, inflation adjusted (real) GDP in terms of levels on the left hand axis and in terms of annual percentage rates of change on the right hand axis.
• How the consumer price index (CPI) is constructed and why it is an imperfect measurement of the cost of living.
i. Go to FRED and prepare a chart showing monthly, seasonally adjusted, consumer price index (CPI) in terms of the index levels on the left hand axis and in terms of 12-month percentage rates of change on the right hand axis.
Format the assignment consistent with APA guidelines.