Case Study: Macroeconomic Challenges: Unemployment and Inflation
This assignment is broken in to three parts.
• Part I (Intro and Data): Due in Week 5
• Part II (Analysis and Solution): Due in Week 6
• Part III (Presentation)
A high unemployment rate in any economy is a symptom of dysfunctionality in the economy. People need income to consume, and consumption leads to production, and production leads to higher demand for labor (employment), so unemployment is a crucial macroeconomic issue that confronts all modern economies. A lower unemployment rate, however, is not the end of the problem. The type of employment and the price of labor (wages) have to be sufficient in order for consumption (which is the major component of GDP) in the economy to be healthy. If wages are low or if the prices in the economy are high, consumption would be low and thus, production and demand for labor would be low, too. High unemployment rate, high part-time employment rate for economic reasons, low wages, and high inflation could have negative effects on economic growth.
In this assignment, you need to identify two main issues related to unemployment and inflation. Then you are going to study their past trends, provide an overview of their current status, and provide solutions to overcome them. You will use data, articles, experts’ opinions, and government reports to draw a clear picture of the current unemployment and inflation issues.
Some areas you might consider are (you could also choose different topics) the following.
• Part-time employment rates for economic reasons
• Unemployment rates among young college graduates
• Unemployment rates by gender
• Unemployment rates among Black and Hispanic communities
• Low supply of labor (professionals) in certain industries
• High supply of labor in education
• Low wages by profession and their causes
• Low demand for labor in some industry (you could choose whatever industry you wish)
• Low wages in some parts of the country
• High unemployment rate among workers with high school diploma or less
• The increase in the price of housing and its effect on investment
• The increase in the price of healthcare and education and their effect on consumption
Your research needs to be structured with consistent and clear thoughts. It also needs to be supported by facts and data. Your results need to be based on solid facts. Your conclusion and recommended solution need to be thorough and based on your findings and understanding of macroeconomic challenges and macroeconomic policies
The case study itself is a one assignment that is broken into two parts over two weeks. Part I is due in Week 5 and Part II (including Part I from Week 5) is due in Week 6.
The final and complete case study submission that is due in Week 6 must contain the portion of the assignment that was due in Week 5. In other words, the final assignment that is due in Week 6 must contain the following sections: (1) Introduction (2) Data (3) Analysis (4) Reflection (5) Solution (6) References.
The References should include a minimum of five sources in the final Week 6 submission. As an example, 3 sources could have been used in the Week 5: Part I assignment and 2 or more additional sources could have been used for the Week 6: Part II assignment, equaling 5 or more total professional sources in the final combined References page. Note that all references used for Week 5: Part I should be included in your Week 5 submission and in your Week 6 submission.
Part I: Due in Week 5
Writing Style and Page Number Requirements
Font Type: Times New Roman or Arial
Font Size: 12
Number of Pages: The final combined Part I and Part II case study should be six (6) to eight (8) pages total, not counting the Title page and References page
Structure and Requirements
• Title Page
o Title of the paper
o Name of the author
o E-mail address of the author
o Class name
o Professor’s name
Your introduction needs to include the following.
o Include a clear definition of unemployment and inflation and how and why they occur and rise in the economy.
o Also provide your understanding of the relationship between economic growth (GDP), high/low unemployment, high/low Inflation, high/low wages, and the way they impact one another.
o Include an overview of the current unemployment and inflation rates in the economy using facts and statics.
o Include a brief description of the two unemployment or inflation-related issues that you are going to address in this paper and their importance. Basically, why do you think they are important to research and resolve?
o Obtain data from at least five credible sources (not Wikipedia) to provide facts about unemployment, inflation, and wages and their growth pattern and their current status.
o Obtain data about changes in unemployment and inflation rates for a period of 10 years.
o Obtain historical data (10 years or more) about GDP growth rate (percentage) and Real GDP volume (in dollar value).
o Obtain data about the changes in the real wages since the year 2005 (before the recession).
o Obtain historical data (10 years or more) about the two issues you are going to address, as well as data about their current status.
o Use tables, graphs, and figures to support your argument. You can find the latest unemployment and inflation data at www.bls.gov (Bureau of Labor Statistics).
• Reference List
Use at least five (5) professional sources to support your argument for the Parts I and II combined – Minimum of two (2) sources for Part I. The references need to be in APA format. To learn more about APA format, click on the link below.