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Page 1of 8ECON1016, 2020 S1, Policy Brief (Part B)ECON 1016 – Macroeconomics 1 Policy Brief Group membersOnly one submission per group Please indicate using * in student name who will be submitting the assignment in Turnitin(in Canvas) on the group’s behalf. Student nameStudentnumber% contribution(must add up to100%)Signature (take apictureofasignature and pastehere)Final mark(tutorsonly)Notes:Your final mark will then be calculated as the group work mark multiplied byyour contribution divided by the highest team member’s contribution. Note that ifequal contribution has been made by a group of 3 for example, the percentages should belisted as “33.3%”. Likewise, for equal contribution by each member in a group of 4, thepercentages should be set as “25%”. See the example belowPart A: Diagnostics AnalysisPage 1of 8
Page 2of 8ECON1016, 2020 S1, Policy Brief (Part B)Name of country:United StatesIndicator from Group A:Gross Domestic Product (GDP)Comments and observationsThe graph shows the quarterly growth rate of the real Gross Domestic Product (GDP) of theUS from 2017-2020. The Bureau of Economic Analysis (BEA) has stated that the downturnin Real GDP in 2019, as compared to 2018, reflects the downturn in nonresidential fixedinvestment and PCE and offset by acceleration in state, local and federal spending. Importsincreased less in 2019 than 2018. Also according to the World Bank and projections oftrading economics, the GDP value of the United States represents 17.50 percent of theworld economy which was worth 21,200 billion US dollars in 2019.Page 2of 8
Page 3of 8ECON1016, 2020 S1, Policy Brief (Part B)Indicator from Group B:Inflation Rate measure by Price Index (CPI or GDP deflator)Comments and observationsThe graph above shows the inflation rate in the price of goods and services produced in theUS. The annual inflation rate climbed to 2.5% in January 2020 from 2.3% in December of2019, the highest since October of 2018 of 2.5% due to a 12.8% rise in the cost ofgasoline. Due to the outbreak of COVID-19 worldwide, there is an expectation of rise inthe prices of goods and services in the US in the coming month hence inflation rate will risedue to the impact the COVID-19 has on the global supply chain. Factories andmanufacturers are forced to shut down and/or procure materials and goods from otherplaces if they rely heavily on getting theirs from China. Page 3of 8
Page 4of 8ECON1016, 2020 S1, Policy Brief (Part B)ReferencesDuffin, E 2020, U.S. - Real GDP growth of the United States from 1990 to 2019, Statista,viewed 29 Feb 2020, <-the-united-states-since-1990/> TRADING ECONOMICS 2020,United States GDP Growth Rate, TRADINGECONOMICS, viewed 29 Feb 2020, <-growth>Bureau of Economic Analysis 2020, Gross Domestic Product, Fourth Quarter and Year2019 (Second Estimate), Bureau of Economic Analysis, viewed 1 March 2020,<-second-estimate> TRADING ECONOMICS 2020, United States Inflation Rate,