U.S. Economy Grows More Than Forecasted (08/30)
" 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 4.0 percent in the second quarter of 2007.” Survey the revised 2 nd quarter GDP estimate highlights from the Bureau of Economic Analysis (Revision). Identify which sectors of the economy showed “stronger” gains (Analysis). Examine why the GDP outlook has “darkened” since then due to the turbulence in financial markets (Forecast). Discuss how the Federal Reserve can help (Fed).
Household Income Rises, Poverty Rate Declines & Number Of Uninsured Up (08/28)
"Real median household income in the United States climbed between 2005 and 2006, reaching $48,200, according to a report released today by the U.S. Census Bureau. This is the second consecutive year that income has risen.” Examine this year’s Current Population Survey information. Discuss what effect, if any, the rising income may have on the official poverty rate (Poverty). What is happening to the number of uninsured in the U.S. (Data)? What factors may be driving the number of uninsured (Drivers)? What should be the appropriate role for the government?
The Fed Cuts Discount Rate Half A Point (08/17)
"To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. ” Review why the Federal Reserve reduced its discount rate by 50 basis points. Discuss how the Federal Reserve banks lend funds to depository institutions or banks at discount window (Window). Explain how the Federal Reserve action may have helped the ease the “credit crunch” and “boost the stock markets” (Analysis).
Court Denies FTC’s Request For Injunction Related To Whole Foods And Wild Oats Merger (08/16)
"As Whole Foods Market, Inc. and Wild Oats Markets, Inc. today have announced that the U.S. District Court for the District of Columbia has denied the Federal Trade Commission's (FTC) request for a preliminary injunction related to the proposed merger between Whole Foods Market and Wild Oats Markets.” Discuss why Whole Foods and Wild Oaks want to merger (Merger). Examine why the FTC may have requested injunction for the proposed merger (Injunction). Review how federal antitrust agencies have performed during the past few years (Performance).
Smoking Declines As Taxes Increase (08/09)
"As Congress weighs the biggest federal cigarette tax hike in history, a USA TODAY analysis finds that higher state taxes on smokers have produced sharp declines in consumption.” Discuss how the amount of decline in smoking may be directly tied to the size of the tax increase. Determine if price elasticity of smoking is elastic or inelastic given that “smoking falls 2.5% - 5% for every 10% increase in the price of cigarettes” (Analysis). Discuss if tax revenue from tobacco sales would increase or decrease when tobacco taxes are increased (Taxes & Analysis).
Shocking Electric Prices Follow Deregulations (08/09)
" When Deborah Jackson opened her electric bill in February, she had no idea it would be a life-changing event. She and her husband, Patrick, who live in a three-bedroom brick house in East St. Louis, Ill., owed Ameren $600.82, up from $172 in January. In March, the tab floated into the stratosphere: $1,024.31.” Discuss how deregulation was implemented to promote competition and lower electric rates (Deregulation). Examine why and how regulation has failed to generate rate or price reduction (Analysis). Discuss how no rate “caps” may provide incentives for power companies to invest in new plants to increase their capacity and lower electric rates in the long run (Capacity).
July Job Growth Slowest Since February (08/03)
"Employers created 92,000 jobs in July, far fewer than economists had predicted, as the unemployment rate ticked up to 4.6% from 4.5% in June, the Labor Department said Friday, a sign that economic growth is slowing.” Examine the Employment Situation Summary “Table A” information from the Bureau of Labor Statistics and identify which sectors of the economy generated net positive jobs in July (Sectors). Discuss how lower labor market participation rates can help keep the official unemployment rates low even though the economy is not generating a large number of jobs each month (Analysis). Assess the historical labor force participation rates (Rates). Discuss if the employment data suggests that the economy is posed to slow down in the coming months (GDP).
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