Homework assignment 4 Week9 Analysis of the Business Cycle
The main objective of this exercise is to get students thinking analytically and creatively about the two-edged nature of many economic phenomena so as to present a “balanced†perspective based on economics principles, theories and concepts against the backdrop of conceptual and analytical thinking.
Visit the web sites or similar ones containing national economic data.
National Economic Accounts at the Bureau of Labor Statistics at http://www.bea.gov , Bureau of Labor Statistics at http://www.bls.gov/data/, The Conference Board at http://www.conference-board.org/economics/indicators.cfm, US Census Bureau at http://www.census.gov/mtis/www/mtis_current.html, National Bureau of Economic Research at http://www.nber.org/releases/, The Federal Reserve at http://www.federalreserve.gov/releases/h15/update/
Review the most recent 8 - 12 months of data on real GDP growth, inflation/CPI, unemployment, Interest rates, consumer confidence index, consumer sentiment index, inventory level, and other relevant economic data.
Based on the collected data, analyze the current macroeconomic situation and its impact on any two(2) Monopolistically competitive firms of your choice. Explore in particular how the two companies’ respond to the macroeconomic conditions in terms of their:
• stock performance,
• current and future sales revenue,
• current and future profits,
• labor costs, and
• hiring decisions.
Your paper should be double-spaced, font-size 12 Times New Roman, using the headings below, should not exceed four pages (cover, appendices , reference pages, charts and graphs not included) and should meet the APA format and reference requirements.
Also, all references must be carefully cited in the APA format (Wikipedia not allowed as reference sources Please!!). Only academic journal sources are allowed.
Headings:
1.Introduction:
1.1 The current economic conditions
1.2 The firms chosen:(Name them , include the characteristics that make them qualify as monopolistically competitive firms)
2.Analysis:
Exploration of how the two companies’ respond to the macroeconomic conditions in terms of their:
2.a. stock performance,
2.b. current and future sales revenue,
2.c. current and future profits,
2.d. labor costs, and
2.e. hiring decisions.
3. Summary and Conclusions drawn from the analysis supported with justification from the data collected.
4. Recommendations
Appendices:
References, Tables, Charts, Graphs.
.