ECO372 Week 3 Team Assignment

Part 1 Analysis and Recommendations:

Describe the current state of the following economic factors and analyze how each affects aggregate supply and demand:

·  Unemployment

·  Expectations

·  Consumer income

·  Interest rates

Develop a set of recommendations for the president regarding government spending and taxes based on the economic factors' current state.

Part 2 Evaluation of Recommendations:

Before you submit your recommendations to the president, decide as a team to evaluate the recommendations from different perspectives. Assign half of your team to evaluate the recommendations from a Keynesian perspective and the other half from the Classical perspective. Based on these evaluations, what adjustments will you make to your recommendations, if any?

Write a 1,050- to 1,400-word report that summarizes the recommendations.