ECO372 Phoenix Principles of Economics and Circular Flow Model Paper

Ten Principles of Economics and the Data of Macroeconomics

Purpose of Assignment

The purpose of this is assignment is for students to review the basic principles of economics and the circular flow model, which shows how markets coordinate the flow of goods and money within an economy. Students will learn how society allocates its scarce resources and how economists are both scientists and policymakers. Students will define GDP and CPI and how they are calculated.

Assignment Steps

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 1,050-word report to the members of the strategic planning committee which includes the following information:

• How are economists both scientists and policymakers?
• Using the circular flow model, explain how markets coordinate the flow of money and goods in an economy.
• How is a nation’s gross domestic product (GDP) and defined and calculated?
• How is the consumer price index (CPI) constructed and why it is an imperfect measurement of the cost of living?

Format the assignment consistent with APA guidelines.

Principles of Macroeconomics, Ch. 1: Ten Principles of Economics

Principles of Macroeconomics, Ch. 2: Thinking Like an Economist

Principles of Macroeconomics, Ch. 7: Consumers, Producers, and the Efficiency of Markets

Principles of Macroeconomics, Ch. 6: Supply, Demand, and Government Policies

Principles of Macroeconomics, Ch. 5: Elasticity and Its Application

Principles of Macroeconomics, Ch. 4: The Market Forces of Supply and Demand

Principles of Macroeconomics, Ch. 3: Interdependence and the Gains From Trade