Real GDP Grew 1.6 Percent (10/30)
“Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.6 percent in the third quarter of 2006, according to advance estimates released by the Bureau of Economic Analysis.” Examine the third quarter GDP estimates from the Bureau of Economic Analysis (BEA). Identify what factors may have been responsible for decelerating the GDP growth (Factors). What is the current outlook for the economy (Outlook)? Discuss if the GDP data hit the "sweet spot" and may indicate a "soft landing" (Analysis).

FOMC Keeps Its Target Rate At 5.25 Percent (10/25)
“The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent." Discuss how the federal funds rate is managed each day by the FOMC (Market) Examine its recent trend and discuss if the federal funds rate may remain at the current level in the coming months (Forecast). Discuss the "structure" of the FOMC and its organizational goals (Structure).

Consumer Prices Tumble In September (10/18)
“The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.5 percent in September, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 202.9 (1982-84=100) was 2.1 percent higher than in September 2005.” Review the last month’s consumer price index report. Discuss how this data may influence the October 24-25 gathering of the Federal Open Market Committee in considering their short term interest rate policy (Data Analysis). Examine the latest summary of the FRB Beige Book (Summary) and deliberate if the FMOC should or should not raise the short term interest rates.

Grameen Bank And Professor Yunus Win 2006 Nobel Peace Prize (10/13)
“For their efforts to create economic and social development from below…" Discuss how providing micro credits can be a “cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable.” (Grameen) Examine how physical capital can enable labor to be more productive and help to elevate the overall standard of living in an economy (Contribution).

FY2006 Deficit Of $248 Billion (10/12)
“The Administration today released the September 2006 Monthly Treasury Statement of Receipts and Outlays of the United States Government. The statement shows the actual budget totals for the fiscal year that ended September 30, 2006, as follows: A deficit of $248 billion…” Examine the current U.S. fiscal condition (News). Examine how the expected “demographic bulge of aging Baby Boomers” (POP Clock) may affect and influence the fiscal outlook (OMB Outlook). Discuss how the aging population may lead to either more taxes or less government benefits in the future (e.g. trade off).

Record Trade Deficit In August (10/12)
“The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total August exports of $122.4 billion and imports of $192.3 billion resulted in a goods and services deficit of $69.9 billion, $1.9 billion more than the $68.0 billion in July, revised. ” Examine the latest report on the nation’s trade deficit and identify which “categories” of imports increased in August (Highlight). Discuss why deficits matter to the US economy particularly if the dollar depreciates and the interest rates rise (Analysis).

Professor Phelps Wins The 2006 Nobel Prize (10/09)
"for his analysis of intertemporal tradeoffs in macroeconomic policy..."Explain how the theoretical framework Professor Phelps developed in the late 1960s helped economists understand the causes oif soaring prices and unemployment in the 1970s (News). Explain how a shift in inflation expectations in the labor market can shift the Phillips curve up or down (Shift). Study the employment and inflation data of the past few years and assess if there is any evidence of short-term tradeoffs (Data).

Job Growth Slows But Unemployment Rate Falls (10/06)
"Nonfarm payroll employment held steady (+51,000), and the unemployment rate (4.6 percent) was essentially unchanged in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.” Review how the official unemployment rate is estimated each month by the BLS. Discuss how this month's job report provides "conflicting signal" on the economy (Analysis). Exmaine how the slumping housing market may be slowing the economy (Analysis).

Rising Costs Weigh On US Carmarkers' Profit (10/02)
"A landmark study, Automotive Competitive Challenges - Going Beyond Lean, released today...found that numerous structural, cultural and philosophical barriers contribute to an average of $2,400 per vehicle profit disadvantage among the three domestic automakers...” Explain why automakers must minimize their production costs when operating in a competive market or industry (Auto Industry). Review what cost cutting steps are taken by Ford and assess if they will help in the long run (Plan).

McAfee Claims Microsoft Increasing Security Risk With Vista (10/02)
"Over the years, the most reliable defenders against the many, many vulnerabilities in the Microsoft operating systems have been the indepedent security companies such as McAfee. Yet, if Microsoft succeeds in its latest effort...” Discuss how Microsoft may stifle market innovation and competition by establishing and maintaining barriers to entry. Discuss why European Commission was "obliged" to impose penalty payment of 280.5 million Euros on Microsoft in July to protect consumers (Press Release).

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