Short-Run Economic Fluctuations

Short-Run Economic Fluctuations


  • Instructions
  • Assignment Files
  • Grading

Purpose of Assignment 

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Students will example the model economists use to analyze the economy’s short-run fluctuations–the model of aggregate demand and aggregate supply. Students will learn about some of the sources for shifts in the aggregate-demand curve and the aggregate-supply curve and how these shifts can cause fluctuations in output. Students will be introduced to actions policymakers might undertake to offset such fluctuations. Students will see why there is a temporary trade-off between inflation and unemployment, and why there is no permanent trade-off. 

Assignment Steps 

Resources: National Bureau of Economic Research 

Select an organization your team is familiar with or an organization where a team member currently works. General Motors

(Our bullet points have nothing to do with the organization we pick, it is just for selection purposes)

Create a 15- to 20-slide Microsoft® PowerPoint® presentation to present to the organization’s Executive Committee.

Include the following items: 

  • Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
  • Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply.
  • Explain how monetary policy affects interest rates and aggregate demand. 2 slides
  • Analyze how fiscal policy affects interest rates and aggregate demand. 2 slides
  • Evaluate why policymakers face a short-run trade-off between inflation and unemployment.
  • Evaluate why the inflation-unemployment trade-off disappears in the long run. 


  •  Each bullet point shall consist of a minimum of 2 PowerPoint slides. Slides shall include in-text citations, at least one picture, and references due by Saturday,  Insert notes with in text citations.

Format your paper consistent with APA guidelines. 

Click the Assignment Files tab to submit your assignment.


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  • Last updated, Mar 16, 2017, 2:48 PM
    • Comment on Mar 14, 2017, 5:37 AM

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