Analysis of the Business Cycle

Go to the web site of the Bureau of Labor Statistics at http://www.bls.gov/ and the Bureau of Economic Analysis (National Economic Accounts) at http://www.bea.gov/national/ or any other data source and collect the most recent 6 months of data on real GDP growth, inflation, and unemployment. Based on this information, write a 3-4 page analysis (double-spaced in A.P.A. format, with a font size of 12 Times New Roman), of where the economy currently is in the business cycle and the implications for a Monopolistically Competitive firm in terms of prospects for higher sales and labor costs. Support your conclusions with data from the BLS - 30 ponts.

All references must be carefully cited (Wikipedia not allowed as reference sources Please!!)

The main objective of this exercise is to get you thinking about the two-edged nature of many economic phenomena so as to present a "balanced" perspective.

1. In this case, you must analyze the data in detail to show what would happen when the economy is growing and unemployment is low . (For example, show the effects on sales, the costs associated with the effect on sales, etc. for monopolistically competitive firms) - 35 points.
2. On the other hand, you must also analyze in detail the effects of higher unemployment during a business cycle downturn. (As for example this may mean lower labor costs when adding employees, but lower demand as a result of falling incomes…etc). Relate your analysis to monopolistically competitive firms) - 35 points.

Price: $10.87

Solution: The downloadable solution consists of 5 pages, 587 words and 3 charts.
Deliverable: Word Document