The real economy in the long run:

Purpose of Assignment Students examine the long-run determinants of both the level and the growth rate of real GDP per person and the factors that determine the productivity of workers and what governments might do to improve the productivity of their citizens. Students will learn how saving and investment are coordinated by the loanable funds market and will see the effects of taxes and government deficits on saving, investment, the accumulation of capital, and ultimately, the growth rate of output. Students will be introduced to tools that people use when they participate in financial markets. Students will see how people compare different sums of money at different points in time, how they manage risk, and how these concepts combine to help determine the value of a financial asset, such as a share of stock. Students will be introduced to the labor market and how economists measure the performance of the labor market using unemployment statistics. Students will address a number of sources of unemployment and some policies that the government might use to lower certain types of unemployment.

Assignment Steps

Resources: National Bureau of Economic Research

Scenario: The organization’s strategic plan calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five years. It is your team’s task to determine where, outside the United States, your organization should locate its new manufacturing plant.

Write a 1,050-word report recommending an off-shore country and support your choice with the following data:

• The factors determining the country’s productivity
• How the country’s policies influence its productivity growth
• How the country’s financial system is related to key macroeconomic variables
• How your organization can reduce the risk they would face in relocating
• The current and projected unemployment over the next five years

Cite a minimum of three peer-reviewed sources not including your textbook.

Format the assignment consistent with APA guidelines.

After your references page, your paper should include a brief addendum that discusses how you implemented/used the feedback you received on your Week 1 paper to improve your Week 2 Paper. Your addendum should consist of a bulleted list of at least 2 bullets and no more than 5 bullets; the word length of each bullet should be at least 5 words and no more than 10 words. Please note: If this addendum is not included, then a 10 percent penalty will be assessed.