Questions We Can Help You To Answer

Paper instructions:

Please answer BOTH of the following questions (you will need 3+ paragraphs here):

Go to the Bureau of Economic Analysis website at www.bea.gov and go to the "U.S. Economy at a Glance" link and read the GDP reports posted there.  Discuss the latest report.  How does our current real GDP reflect the current state of the macroeconomy?  Also, use the idea of the circular flow in the macroeconomy to explain the linkages between spending and income in the economy (is there an increase in personal income that coincides with the change in GDP).  According to the latest data and your own evaluation of the economy, where would you say we are in the Business Cycle?  Explain in detail.

AND

Go to the Bureau of Labor Statistics website at www.bls.gov and click on "Inflation Calculator" under "Inflation and Consumer Spending".  See how much $5,000 today (use the latest date) buys in the year of your birth (or any other year of your choice).  What has changed and why?  How do you expect income changed with these changes in price level?  Explain in detail, including the difference between nominal and real income.