Macro Grp Assignment part A-2.docx - Page 1 of 8 ECON1016 2020 S1 Policy Brief(Part B ECON 1016 \u2013 Macroeconomics 1 Policy Brief Group members Only one

Macro Grp Assignment part A-2.docx - Page 1 of 8 ECON1016...

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Page 1 of 8 ECON1016, 2020 S1, Policy Brief (Part B ) ECON 1016 – Macroeconomics 1 Policy Brief Group members Only 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 name Student number % contributio n (must add up to 100%) Signature (take a picture of a signature and paste here) Final mark (tutors only) Notes: Your final mark will then be calculated as the group work mark multiplied by your contribution divided by the highest team member’s contribution. Note that if equal contribution has been made by a group of 3 for example, the percentages should be listed as “33.3%”. Likewise, for equal contribution by each member in a group of 4, the percentages should be set as “25%”. See the example below Part A: Diagnostics Analysis Page 1 of 8
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Page 2 of 8 ECON1016, 2020 S1, Policy Brief (Part B ) Name of country: United States Indicator from Group A: Gross Domestic Product (GDP) Comments and observations The graph shows the quarterly growth rate of the real Gross Domestic Product (GDP) of the US from 2017-2020. The Bureau of Economic Analysis (BEA) has stated that the downturn in Real GDP in 2019, as compared to 2018, reflects the downturn in nonresidential fixed investment and PCE and offset by acceleration in state, local and federal spending. Imports increased less in 2019 than 2018. Also according to the World Bank and projections of trading economics, the GDP value of the United States represents 17.50 percent of the world economy which was worth 21,200 billion US dollars in 2019. Page 2 of 8
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Page 3 of 8 ECON1016, 2020 S1, Policy Brief (Part B ) Indicator from Group B: Inflation Rate measure by Price Index (CPI or GDP deflator) Comments and observations The graph above shows the inflation rate in the price of goods and services produced in the US. The annual inflation rate climbed to 2.5% in January 2020 from 2.3% in December of 2019, the highest since October of 2018 of 2.5% due to a 12.8% rise in the cost of gasoline. Due to the outbreak of COVID-19 worldwide, there is an expectation of rise in the prices of goods and services in the US in the coming month hence inflation rate will rise due to the impact the COVID-19 has on the global supply chain. Factories and manufacturers are forced to shut down and/or procure materials and goods from other places if they rely heavily on getting theirs from China. Page 3 of 8
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Page 4 of 8 ECON1016, 2020 S1, Policy Brief (Part B ) References Duffin, 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 , TRADING ECONOMICS, viewed 29 Feb 2020, < - growth > Bureau of Economic Analysis 2020, Gross Domestic Product, Fourth Quarter and Year 2019 (Second Estimate), Bureau of Economic Analysis, viewed 1 March 2020, < - second-estimate > TRADING ECONOMICS 2020, United States Inflation Rate,
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