Competency
In this project, you will demonstrate your mastery of the following competency:
Determine the economic impact of historical and current events using models of macroeconomics
Scenario
You work for Quantigration, Inc., a semiconductor manufacturing plant headquartered in the United States. Capitalizing on advancements in its product, Quantigration has aggressively expanded and acquired fabrication plants and workers around the world.
Although Quantigration has been expanding, the world is an ever-changing place. Your manager has assigned you to the EWC, an employee-run Economic Watch Committee tasked with reporting on and analyzing events that might impact the overall economic environment, or the macroeconomy. As a member of this committee, you’ve been tasked with scanning a news source for events that might impact the overall economic environment and then reporting back to the group.
Directions
Committee Report
The EWC has been tasked with scanning the news for events that might impact the overall economic environment, or the macroeconomy. As a member of the committee, you are expected to report back on an event that may be significant. Use the Committee Report form in the Deliverables section to complete your report.
In support of your membership on the committee, your manager has allowed you to spend part of each day reading the headlines to look for events to report back on. There are a number of recommended news sources in the Supporting Materials section, or you may select your own.
As you read, identify a current event or trend that could have a long- and short-term macroeconomic impact.To determine which events might have a macroeconomic impact, consider how they might affect various models used in macroeconomics (AD–AS, comparative advantage, etc.). Remember, the event does not need to impact Quantigration directly.
The event could take place in the United States or in another country.
Note: Make sure to include a link to an article in your report. While you may choose your own news source, the article must be freely accessible to your reviewer (i.e., it must be not require an account or be behind a paywall).
Assess the impact of a current event on an economy using macroeconomics models/terminology. Specifically, address the short- and long-term effects on the following:Explain how this event might impact macroeconomic equilibrium.
Describe or draw a graph approximating the change in aggregate supply and/or aggregate demand (starting from equilibrium).
Note: To show the movements in the AD–AS model graphically, you may use the drawing tools in Microsoft Word or the graphing tool in the Deliverables section of this project. Alternatively, you may describe the shifts that will occur.
Determine the impact of an event on the exchange rates in a country.How might this event impact demand for the U.S. dollar?
How might a change in demand impact the exchange rate?
Research for Blog
In addition to your report, the committee has asked you to help contribute to Quantigration’s online blog. While you don’t need to write the article itself, the blog writer has asked the committee to provide some initial research on a historical event from a macroeconomic perspective.
Identify a historical event (prior to the year 2000) that had a long-term macroeconomic impact.To determine which events had a macroeconomic impact, consider their impact using macroeconomic models (AD–AS, comparative advantage, etc.).
Note: There are a number of recommended historical sources in the Supporting Materials section, or you may select your own.
Assess the impact of a historical event on an economy using macroeconomics models/terminology.Explain how this event impacted macroeconomic equilibrium.
Describe or draw a graph approximating the change in aggregate supply and/or aggregate demand (starting from equilibrium).
Note: To show the movements in the AD–AS model graphically, you may use the drawing tools in Microsoft Word or the graphing tool in the Deliverables section of this project. Alternatively, you may describe the shifts that will occur.
What to Submit
Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:
Committee Report (Short answers, 500–1,000 words)
Fill out this report about your chosen event and submit it as a Microsoft Word document.
To show the movements in the AD–AS model graphically, you may use the drawing tools in Microsoft Word or this graphing tool and take a screenshot. Alternatively, you may describe the shifts that will occur.
Research for Blog (250–500 words)
Write a brief summary of your research around a historical event.
To show the movements in the AD–AS model graphically, you may use the drawing tools in Microsoft Word or this graphing tool and take a screenshot. Alternatively, you may describe the shifts that will occur.
Supporting Materials
The following resource(s) may help support your work on the project:
Citation Help
Need help citing your sources? Use the CfA Citation Guide and Citation Maker.
News Sources:
Choose one of the following news sources to inform your report:
Website: Planet Money
This segment from National Public Radio (NPR) contains in-depth articles and podcasts regarding the economy.
Website: BBC News Economy
This web page from the British Broadcasting Company provides economic news.
Website: Reuters Markets & Finance News
This web page from Reuters provides news about markets and finance.
Shapiro Library Database: ProQuest: Wall Street Journal
This publication in the ProQuest database provides economic news. To see the most current issue, click the linked date to the right of “Latest available issue.” For research assistance, contact the Shapiro librarians on the library homepage.
Shapiro Library Database: Global Issues in Context: The Economist
This publication in the Global Issues in Context database provides economic news. To see the most current issue, choose the most recent date to the right of “Full-text coverage.” For research assistance, contact the Shapiro librarians on the library homepage.
Historical Sources:
Choose one of the following websites to inform your research for the blog:
Website: Federal Reserve History
This website from the Federal Reserve Bank of Richmond provides several essays on the history of the Fed and the economy.
Website: Federal Reserve Economic Data (FRED)
This website from the Federal Reserve provides easily searchable economic data from a multitude of sources, both current and historical.