For Colossal Genius/ Assignment due 11/25/19 / Please use the template example given to go along with this assignment. Thank you

ECO 100

How to Earn an A on Assignment 2

In Assignment 1 you wrote about an industry from a microeconomic perspective. That is, the focus was on the industry itself. In Assignment 2 you write about an industry (it can be the same one or a different one) from a macroeconomic perspective. In macroeconomics we think about the economy as a whole, not just the specific industry.

The paper should be at least 2-3 pages long, but that won’t be a problem if you answer each of the questions.

I have two big pieces of advice for you on this assignment.

1. Use the “optional template.” If you use the template, the paper will be organized well and you’ll be guided to answer each of the questions in the assignment. Some students lose points when they skip entire sections of the paper.

2. Follow carefully the “Instructions” in the assignment. They tell you what to do, and they also have links to data sources that you can use to answer the various questions. For extra tips, please see the videos I prepared explaining these instructions.

Now for some specifics. I’ve taken these from the “Instructions” section of the assignment, and I’ve expanded on them where I think it will help.

Choose your industry and its NAICS number . If you liked your industry from Assignment 1, it’s probably a good idea to use it again.

Write a brief one-paragraph introduction to the industry . Refer to the NAICS (North American Industry Classification System) to review the details about your industry.

Assess your selected industry’s relative size and/or growth rate in the economy . This means you need to compare the size or growth rate of your industry to real GDP. I recommend that you compare the size, rather than the growth rate. Most students find it more straightforward. To compare the size of your industry to real GDP you can use the link in Step 2 of the instructions to find the numbers. You’re going to need two numbers:

The first number: The dollar sales of your industry in a recent year.

The second number: The real GDP for the United States in that same year. [Note that the real GDP number you need is at the top of the page that has your industry number.]

Divide the first number by the second number to get your industry’s relative size in the economy.

Identify one newsworthy macroeconomic indicator or policy (e.g., GDP, unemployment, inflation rates, interest rates, government taxation and spending decisions, and/or FED decisions) that the industry should monitor and explain why it’s important and how it might impact your selected industry. There are links in the assignment to help you find these numbers. You can choose any of these indicators or policies. Inflation and unemployment probably affect almost all industries.

Describe a recent trend in the macroeconomic indicator or policy. Include a graph, chart, or table that illustrates the observed trend. An easy way to do this is to google your indicator or policy and then choose the “Images” option to get a graph, chart, or table. Say your industry is furniture. You could google, “unemployment in the U.S. over time” and find a graph. Explain why your industry should monitor unemployment in the United States, and how unemployment could affect your industry. For example, would an increase in unemployment hurt your sales?

Finally, summarize how you think this industry will perform in the future. Provide support for your rationale. Here you should search for forecasts of your industry’s economic performance. Explain how you think the industry will perform in the future. Use the forecasts that you’ve found as references, and explain whether you agree with them or not.

Use the Strayer Writing Standards. The most important thing to do is to identify your sources. (You’ll need at least two.) If you quote from a source instead of writing in your own words, put quotation marks around the quoted material.

That’s it! This assignment is longer than the first one, but you can attack it the same way you eat an elephant – one bite at a time.