ECON545 Paper Project 2

The Macroeconomic Paper tests your ability to apply economic principles to a business decision considering

the impact of macroeconomic variables. Select one situation from the items outlined below: A to D.

Complete the paper on the selected situation as specified below. The completed paper is a professional

report and is due in Week 6 (180 points). See the grading rubric at the end of this document. Be sure to use

the DeVry library to find data, and avoid questionable sources, such as Wikipedia.

Each of the scenarios has a list of macroeconomic areas you are to address, with sources, in your answer.

Briefly, you are to research and show how these apply to your scenario: GDP growth rate (20 points), the

business cycle, unemployment, and inflation (40 points), fiscal policy and level of unemployment (30 points),

monetary policy and interest rates (30 points), and demographics (10 points).

Situation A

Rick, your friend, runs a small manufacturing plant that produces parts for the auto industry. Rick is thinking

of expanding his operations to meet the increasing demand from car manufacturers. Hearing of your taking

this course in business economics, he asks you for advice on how to go about making the expansion

decision.