ECON195 – Macroeconomics

Portfolio Project Directions and Rubric

This assessment is worth 20% of your overall grade.

Deadline

Due by the end of Weeks 2, 3, 5, 6, and 7 at 11:59 pm, ET.

Completing this Assessment will help you to meet the following outcomes:

Course Outcomes: Apply macroeconomic theory and basic principles to economic data sets. Explain basic economic principles and theory.

Institutional Outcomes: Information Literacy and Communication - Utilize appropriate current

technology and resources to locate and evaluate information needed to

accomplish a goal, and then communicate findings in visual, written and/or

oral formats. Relational Learning - Transfer knowledge, skills and behaviors acquired

through formal and informal learning and life experiences to new situations. Thinking Abilities - Employ strategies for reflection on learning and practice

in order to adjust learning processes for continual improvement. Directions

Each week, you will view a video that shows how to plot data in Excel. Upon

viewing the video, use the following Excel template to complete your

response to each question and submit. Make sure you incorporate the

feedback from your instructor that you receive each week into your final

version.

Click the link below for the Excel template:

ECON195 Portfolio

Project Template.xlsx Week 2: Market Forces of Supply and Demand on: Surplus and

Shortage

Problem #1

Due Date: Due by the end of Week 2 at 11:59 pm, ET. In any market, demand is used to study the behavior of buyers, and supply is

used to study the behavior of sellers and producers. In order to study the ECON195 – Portfolio Project Directions and Rubric 2 behaviors of buyers and sellers, you will use the beans market for your

Homework Problem to determine the market demand and market supply.

Demand and supply curves explain the relationship between price and

quantity. Because there is a law that guides market demand and supply, the

demand and supply curve shifts. This law of demand and supply assumes

that every factor that affects market demand and market supply, other than

price, is constant. Factors that are held constant for market demand are:

income, price of related good, tastes, expectations, and number of buyers.

For supply market, they are: input prices, technology, expectations, and

number of sellers.

In Problem #1, you need to plot graphs in Excel to show how the demand

and supply curve shifts when quantity increases or decreases at given prices.

Supply and Demand: The Beans Market

View this video to complete the problem below:

https://www.youtube.com/watch?v=w-R4BDNxSLU

Answer the questions below by using the following schedule for the beans

market:

Price Quantity

Quantity

Demanded Supplied

$5

50

20

$6

45

25

$7

40

30

$8

35

35

$9

30

40

$10

25

45

$11

20

50

$12

15

55 Use the Excel template to graph the demand and supply curves based

on the values given in the table above.

Assume that the quantity demanded for beans rises by 30 million

pounds per month for specific given price.

Plot the initial demand and supply curves on a single graph based on

given values in the above table.

Graph the new demand curve given by this change.

Relative to the values given in the above table, let’s assume that the

quantity demanded falls by 30 million pounds per month between $5

and $10 per pound; between $10 and $12 per pounds, and the

quantity demanded become zero.

Plot initial the demand curve given by this change on a single graph. ECON195 – Portfolio Project Directions and Rubric 3 Graph the new demand curve given by this change.

Assume that the quantity supplied for beans rises by 30 million pounds

per month for specific given price, at the time the value for quantities

supplied remain the same as shown in the table above.

Plot initial demand and supply curves on a single graph based on given

values in the above table.

Graph the new supply curve given by this change.

Relative to the values given in the table above, let’s assume that, the

quantity supplied falls by 30 million pounds per month at prices above

$8, at a price of $8 or less per pound and the quantity supplied

becomes zero.

Plot the initial demand and supply curves based on the values given in

the table above and new supply curve given by this change on a single

graph. Week 3: Supply and Demand: Price Elasticity

Problem #2

Due Date: Due by the end of Week 3 at 11:59 pm, ET.

Price plays a significant role in quantity demanded and quantity supplied.

Consumers and sellers respond differently to changes in the price of different

types of goods and the situation. To measure the responsiveness of

consumers and sellers to changes in the price of a good, some rules of

thumb are given. These rules of thumb are said to influence price elasticity

of demand and supply making the curves to vary. The rules of thumb that

affect price elasticity of demand are: Availability of a close substitute

Necessities versus luxuries

Definition of the market

Time zone For price elasticity of supply, they are: Flexibility of sellers to change in quantity of good produced

Time period Consequently, price elasticity can be unit, elastic, and inelastic demand and

supply. In Problem #2, you will need to plot graphs in Excel to determine

price elasticity of demand and supply showing the varying demand and

supply curve. ECON195 – Portfolio Project Directions and Rubric 4 View this video to complete the questions below:

https://www.youtube.com/watch?v=MlEBmoPGJvo

Answer the questions below by using the following demand schedule:

Pri

ce

$1

3

$1

2

$1

1

$1

0

$9

$8

$7

$6

$5

$4 Quantit Quant

y

ity

Deman Suppli

ded

ed

585

1305

635 1130 665 980 695 930 705

730

750

780

830

930 840

730

630

480

360

260 Use the Excel template to calculate and plot the graph of the elasticity

of demand between one point and the next. That is, plot A-to-B, B-to-C

etc. Upon plotting the graph, determine the price elasticity of each

value. For instance, it could be price elasticity, price inelastic, or unit

elastic.

Using the same Excel template, calculate the arc elasticity of supply

between one point and the next. That is, plot A-to-B, B-to-C, etc. Upon

plotting the graph, determine the price elasticity of each value. For

instance, it could be price elasticity, price inelastic, or unit elastic. Week 5: Supply and Demand: Government Policies

Problem #3

Due Date: Due by the end of Week 5 at 11:59 pm, ET.

As mentioned in Problem #2, price play a role in quantity demanded and

supplied. Nevertheless, to regulate the economy, prevent inflation, and make

certain goods and services affordable, the government regulates prices of

certain goods and services. ECON195 – Portfolio Project Directions and Rubric 5 When the government set maximum prices, it is called “price ceiling”. When

minimum prices are set by the government, it is called “price floor”. Hitting

the “price floor” or “price ceiling” can cause shortage or surplus. When the

government imposes either “price floor” or “price ceiling” below equilibrium

price, a shortage has been created. However, when “price floor” or “price

ceiling” is above equilibrium price, surplus has been created.

In Problem #3, you will plot demand and supply curves in Excel to show

whether shortage or surplus was created when government impose price

floor.

View this video to complete the questions below:

https://www.youtube.com/watch?v=YWiuxFPEm4A

Given this hypothetical demand and supply schedule for corn, in which all

quantities are in millions of bushels per year, respond to the questions below:

Price per

bushel

$

3.00

$

4.00

$

5.00

$

6.00

$

7.00

$

8.00

$

9.00 Quantity

Demanded

9 Quantity

Supplied

3 8 4 7 5 6 6 5 7 4 8 3 9 Use the same Excel template to graph demand and supply curve for

corn. Label the equilibrium quantity and price. Let’s suppose that the government now imposes a “price floor” at $7

per bushel. Show the effect of this government policy graphically. Week 6: Supply and Demand: International Trade

Problem #4A ECON195 – Portfolio Project Directions and Rubric 6 Due Date: Due by the end of Week 6 at 11:59 pm, ET.

Aggregate demand and aggregate supply determine output level and

employment in any country’s economy at any given price level. Aggregate

demand and aggregate supply curves show the relationship between price

level and quantity of goods and services demanded by households, firms,

consumers, and the government, and supplied by sellers and producers

respectively.

Note that quantity is referred to as output level. When there is a change in

price level, the aggregate demand and aggregate supply curve shift either to

be left or right.

View this video to complete the questions below:

https://www.youtube.com/watch?v=Ls3ZLYQ5NtE

The table below shows a hypothetical aggregate demand (AD), aggregate

supply (AS), and price level for Australia.

PL

130

140

150

160

170

180

190 AD

680

670

660

650

640

630

620 AS

580

620

660

690

740

760

770 Plot the AD/AS diagram from the data shown on the Excel template you

have been using. Identify the equilibrium. Let’s supposed that at every price level, government tax cuts and

aggregate demand increase by 40. Provide the new equilibrium due to increase by 40. Explain how the output will be altered by the new equilibrium? How will the price level be altered by the new equilibrium? Relate your answers to employment. Problem #4B – Extra Credit

Like Problem #4A, note that aggregate demand and aggregate supply also ECON195 – Portfolio Project Directions and Rubric 7 determine whether there will be inflation or unemployment, as it determines

output level and employment. In this Problem, plot aggregate demand and

supply curve on excel to determine whether you expect inflation and

unemployment to occur in Australia.

You do not need to complete this Problem. However, if you do, your instructor

will give you extra credit.

https://www.youtube.com/watch?v=Y3hjuu1OJAM

Below is another set of aggregate supply (AS), aggregate demand (AS), and

price levels:

Price

Level

110

130

150

170

190 AD AS 775

675

575

460

355 350

425

575

667

768 Plot the AD/AS graph and identify the equilibrium. Do you expect unemployment to be relatively high or low in this

economy? Explain why? Do you expect inflation to be relatively high or low in this economy? Is

it a concern? Explain your rationale. Let’s imagine that AD reduces by 250 at every price level because of

loss confidence in the economy by consumers. Show the new

aggregate equilibrium. Explain how the original output, price level, and employment will be

affected by the shift in AD. Upload your final version to your ePortfolio to one of the three

Institutional Outcomes listed on the first page of these directions.

Week 7: Reflection Due by the end of Week 7 at 11:59 pm, ET.

Directions

In Weeks 2, 3, 5, and 6, you used Microsoft Excel to plot demand and supply

curves to find equilibrium price and quantity. In the process of completing ECON195 – Portfolio Project Directions and Rubric these demand and supply graphs, you covered shift in demand and supply

curve, price elasticity, government policies, aggregate demand, and

aggregate supply. In approximately 150 of your own words and in a Word

document, reflect on your understanding of plotting demand and supply

curves to find equilibrium. You must address the following prompt in your

reflection: Explain how and why businesses or our government determine

demand and supply curve to find equilibrium price and quantity.

Discuss how completing this Portfolio Project helped you gain the

knowledge, skills, and capabilities to effectively employ the outcomes

listed on the first page in the workplace. Upload and submit your final reflection in Blackboard. 8 ECON195 Portfolio Project Directions and Rubric

Criteria Content

60 points Organizati

on

30 points Grammar

10 points Instructo

r

Comment

s Excellent

54 - 60 points

Accurately completed all parts

of the problem. Created

accurate graphs per the data

provided.

27 - 30 points

The spreadsheet is formatted

correctly. Font style and size is

consistent throughout the

spreadsheet.

9 - 10 points

1 or no spelling and/or

grammatical errors. Average Needs Improvement 42 - 53 points

Accurately completed most

parts of the problem.

Created somewhat accurate

graphs per the data

provided. 0 - 41 points

Did not complete many parts of

the problem. Created inaccurate

graphs per the data provided. 21 - 26 points

The spreadsheet is mostly

formatted correctly. Font

style and size is consistent

throughout the spreadsheet. 0 – 20 points

The spreadsheet is not

formatted correctly. The Font

style and size is not consistent

throughout the spreadsheet. 7 - 8 points

2-3 spelling and/or

grammatical errors. 0 - 6 points

Contains 4 or more spelling

and/or grammatical errors. Total Points Poin

ts ECON195 – Portfolio Project Directions and Rubric 10 ECON195 Portfolio Project Reflection Directions and Rubric

Criteria Content

80 points Mechanics

20 points Instructo

r

Comment

s: Excellent

72 - 80 points

Explained all demand and

supply graphs as they relate to

shortage, surplus, government

policies, unemployment and

inflation for each question.

Responded to all assigned

questions.

18 - 20 points

1 or no spelling and/or

grammatical errors. Average

56 - 71 points

Explained some demand

and supply graphs as they

relate to shortage, surplus,

government policies,

unemployment and inflation

for each question.

Responded to some

assigned questions.

14 - 17 points

2-3 spelling and/or

grammatical errors. Needs Improvement

0 - 55 points

Did not explain demand and

supply graphs as they relate to

shortage, surplus, government

policies, unemployment and

inflation for each question. Did

not respond to all assigned

questions.

0 - 13 points

Contains 4 or more spelling

and/or grammatical errors. Total Points: Poin

ts