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 875-word report to the members of the strategic planning committee explaining the following information:
- What principles society uses to allocate its scarce resources
- Using the circular flow model, explain the flow of money and resources in an economy.
- A country’s gross domestic product (GDP) and how it is defined and calculated. Be sure to include the differences between real GDP and nominal GDP
- How the consumer price index (CPI) is defined and constructed? Research the current CPI and inflation rate of US. And explain the importance of CPI on the cost of living measurement.