Find an article that discusses a change, or changes, in a macro economy. It could mention recent changes in inflation, unemployment, GDP, or something else. It may be in reference to the U.S. economy, or it could discuss another economy. You have a lot of flexibility in this assignment. You must provide documentation of your article in sufficient detail so that anyone else in the class can find your article. I leave the documentation format to you, such as MLA, APA, or another format, but the citation is REQUIRED and must be specific enough so that your article can be located by others. The Wall Street Journal is an excellent source for this assignment, but you can use any credible source.
2. Summarize the article IN YOUR OWN WORDS. You need to provide specifics in terms of what is happening and why.
3. Analyze what is happening in terms of the aggregate demand/aggregate supply model. In this section you must be very detailed. Explain which curve or curves are moving, which way they are moving and why.
4. State the concluding results of your analysis.
As an example of steps 3 and 4, assume that you have located an article that consumers in South Africa are expecting a worsening economy due to large declines in tourism. After summarizing the article and providing the citation information, you then go on to state that the expectations of a worsening economy causes a decrease in consumption spending. This results in a leftward shift of the AD curve and causes a lower equilibrium price level, a lower real GDP, and higher unemployment.
If there are influences on aggregate demand and aggregate supply, you must indicate this and discuss the uncertainty resulting from the movement of the two curves, unless the article provides enough information to eliminate the uncertainty.