Ten Principles of Economics and the Data of Macroeconomics, economics homework help

Purpose of Assignment

The purpose of this is assignment is for students to review the basic principles of economics and the concepts of the circular flow model, showing the connectivity of society’s economic players and the flow of goods and money within an economy. Students will learn how society allocates its scarce resources and how economists are both scientists and policymakers. Students will define GDP and CPI and how they are calculated.

Assignment Steps

Resources: National Bureau of Economic Research;



Principles of Macroeconomics: Ch. 1, 2, 3, 4, 5, 6, and 7

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.
  • How the economy coordinates society’s independent economic actors.
  • A country’s gross domestic product (GDP) and how it is defined and calculated.
  • How the consumer price index (CPI) is constructed and why it is an imperfect measurement of the cost of living.

Format the assignment consistent with APA guidelines. Use headers, headlines such as introduction, all the questions asked, conclusion, and reference. Use in text-citation accordingly with the APA guidelines.

References: use textbook, and National Bureau of Economic Research, and other peer viewed articles.

Principles of Macroeconomics, Ch. 1: Ten Principles of Economics

Textbook: Principles of Macroeconomics

Author: N. Gregory Mankiw

Seventh Edition

How People Make Decisions

  • 1: People Face Trade-offs
  • 2: The Cost of Something Is What You Give Up to Get It
  • 3: Rational People Think at the Margin
  • 4: People Respond to Incentives

How People Interact

  • 5: Trade Can Make Everyone Better Off
  • 6: Markets Are Usually a Good Way to Organize Economic Activity
  • 7: Governments Can Sometimes Improve Market Outcomes

How the Economy as a Whole Works

  • 8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services
  • 9: Prices Rise When the Government Prints Too Much Money
  • 10: Society Faces a Short-Run Trade-off between Inflation and Unemployment

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