Economic Analysis Project

You also need to include any references (including textbook) using the appropriate APA format.

Suppose you are a senior economist working for the U.S. government. Recently you are assigned to tasks with four important economic issues.

Task 1: Suppose Jerome Powell, the current chairman of the Federal Reserve, said the Federal Reserve is planning to gradually increase the interest rate in 2016. How would this affect the housing market? Explain this using graphical analysis you learned from this course. Your discussions should include the change in house prices and the change in the demand and supply for houses. Task 1 should comprise of the following structure with sections and headings.

1. Introduction
2. Discussion
3. Conclusion

Task 2: Suppose that the U.S. is undergoing appreciation of the U.S. dollars against European countries, and is undergoing depreciation of the U.S. dollars against Asian countries. How would this affect aggregate demand in the U.S.? Keep in mind that net export (NX) is a component of aggregate demand. Task 2 should comprise of the following structure with sections and headings.

1. Introduction
2. Discussion
3. Conclusion

Task 3: Suppose you are exploring the price elasticity of a variety of products in the U.S. market. Price elasticity of demand for five products are summarized in the following table.

Based on this information, as an economic consultant, which price of the above-listed products must be raised to promote sales revenue? Task 3 should comprise of the following structure with sections and headings.

1. Introduction
2. Discussion
3. Conclusion

Task 4: Suppose the overall price level in the U.S. has been rising throughout 2020. As a consultant, what would you recommend, to address this issue, using fiscal policy such as taxes and/or government expenditure? Explain using graphical analysis (Aggregate demand curve). Task 4 should comprise of the following structure with sections and headings.

1. Introduction
2. Discussion
3. Conclusion