Expert answer:Below, I have attached the rubric/guidelines to what I need done. This is a follow up project that is in correlation with the first part that I have already completed myself. The research you will be doing for the second part will be continued from the research from the first part, which I have also attached if you need to refer to it and use as an example. We were to choose a decade and analyze the economy at that time and answer the questions on the rubric. I chose 2000-2010.
eco_201_milestone__1_.ppt
eco_201_milestone_two_guidelines_and_rubric.pdf
Unformatted Attachment Preview
Economic Period of 2000-2010
SILSILA NIKZAD
ECO 201
MILESTONE ONE
ECO 201
2000-2010 Period of U.S.
Economic History Overview
The beginning of the century started off rough for
the U.S. With the attacks of September 11th, The
Recession of 2008, Hurricane Katrina, and the crash
of the tech bubble and housing bubble.
The tech and housing bubble crashes alone caused
the U.S. to loose $6.2 trillion alone. (Smith, 2015) Then
came along the crash of the stock market in 2008.
That brought us to two major financial crashes in the
short span of a decade. The recession of 2008 was
the worst thing to happen to our economy after the
Great depression.
Unemployment rose to 10%, GDP fell by 3.9%,
household income got reduced approximately 50%.
Those first ten years of the century were the hardest
the U.S. has seen since the 1930’s. After 2011, they
slowly started rebuilding.
ECO 201
GDP
Analyze the annual GDP to
calculate specific growth
rates and trends in the U.S.
economy.
The 9/11 attacks, Hurricane
Katrina, and the financial
crisis of 2008 impacted the
U.S. economy heavily.
The attacks of 9/11 left the
economy at a real GDP of
$12.5 trillion with a growth
rate of 1%. Hurricane Katrina
left us with a real GDP of
$14.2 trillion and a growth
rate of 3.3%.
The financial crisis on 2008
was by far the worst part of
the decade with a growth
rate of -0.3% (Amadeo,
2017).
ECO 201
GDP
Households had to limit there spending,
increase savings, and monitor there
income as a result of the great Recession.
The aging of the population, lack of
business investment during the recession,
and high long-term unemployment were
expected to place constraints on
potential GDP growth (Barello, 2014).
Employment usually prolongs the output in
recovery from recessions.
ECO 201
Unemployment and
Inflation
The great recession of 2008
triggered the events following
it. Consumers cut back on
spending, 8.4 million jobs
were lost within one year
which was the worse since
the Great Depression.
Katrina caused a large leap
in inflation when it hit, prices
of U.S. consumptions nearly
doubled (Economy Watch,
2010).
The relationship between
growth rate and
unemployment is negative
when we are going through a
recovery period.
ECO 201
Unemployment and
Inflation
Hurricane Katrina
influenced inflation greatly
and was one of the most
costly natural disasters we
have seen.
It caused almost $40 billion
worth of damage with a
$26 billion payout from
insurance companies for
property damage.
Because of Katrina, jobs
were lost due to businesses
not being able to re-build
because they did not have
insurance.
ECO 201
Interest Rates
Higher interest rates in our country will
increase the value of our country’s
currency.
Higher interest rates are used to attract
foreign investment. That gradually
increases the demand for our country’s
currency.
Lower interest rates do not attract
foreign investments and decrease our
currency’s value.
ECO 201
Interest Rates
Since our interest rate
dropped drastically
during and following
the Great Recession,
our currency was not
valued (Investopedia,
2017).
GDP increases as the
interest rate increases.
Increases in GDP are a
sign of economic growth.
Of course during the
Great Recession, the
interest rate was at an all
time low which led to the
GDP of the economy
decreasing as well.
ECO 201
Conclusions
Overall, the time period between 2000-2010
was by far the worse the United States has
seen economically since the Great
Depression.
We experienced a financial crisis for roughly a
year, went to war with Iraq, got hit by
Hurricane Katrina, our housing and tech
bubbles popped.
Eventually though, everything came back in
to place once Former President Obama was
elected in to office.
ECO 201
References
News, N. S. (2015, January 29). Opinion: Why the 2000s sure were horrible for
us. Retrieved October 23, 2017, from
https://www.newsday.com/opinion/oped/the-2000s-sure-were-a-horribledecade-for-the-u-s-noah-smith-1.9876065
Consumer spending and U.S. employment from the 2007–2009 recession
through 2022 : Monthly Labor Review. (2014, October). Retrieved October 23,
2017, from https://www.bls.gov/opub/mlr/2014/article/consumer-spendingand-us-employment-from-the-recession-through-2022.htm
Unemployment and underemployment. (n.d.). Retrieved October 23, 2017,
from http://stateofworkingamerica.org/great-recession/unemployment-andunderemployment
E. (2010, June 29). Katrina’s Impact on the US Economy. Retrieved October
23, 2017, from
http://www.economywatch.com/world_economy/usa/katrina-impact-useconomy.html
Baldwin, J. G. (2017, October 16). The Impact of a Fed Interest Rate Hike.
Retrieved October 23, 2017, from
http://www.investopedia.com/articles/investing/010616/impact-fed-interestrate-hike.asp
Suranovic, S. (2017). International Finance: Theory and Policy, v. 1.0.
Retrieved October 23, 2017, from
https://catalog.flatworldknowledge.com/bookhub/26?e=suranfin-ch07_s11
ECO 201
ECO 201 Milestone Two Guidelines and Rubric: Monetary Policies
Continue your observation of the 10-‐year period selected for Milestone One, and research the government monetary policies during that timeframe.
Specifically, the following critical elements must be addressed:
• Examine the monetary policies in place at the start of your specific time period in relation to their effects on macroeconomic issues. For instance,
consider the discount rate set by the Fed, the rates on reserves, open market operations, and so on.
• Analyze new monetary policy actions undertaken by the U.S. government throughout the time period by describing their intended effects, using
macroeconomic principles to explain the actions.
• Explain the impact of the new monetary policy actions on individuals and businesses within the economy by integrating the macroeconomic data and
principles.
Guidelines for Submission: Your monetary policies milestone should be 3–5 slides in MS PowerPoint, not including title or reference slides, and include
speaker notes to accompany the slides. Your reference list slide needs to be in APA format.
Critical Elements
Proficient (100%)
Needs Improvement (75%)
Not Evident (0%)
Value
Monetary Policies
Examines the monetary policies in Examines the monetary policies in Does not examine the monetary
30
place at the start of the selected
place at the start of the selected
policies in place at the start of the
time period in relation to their
time period, but does not relate
selected time period
effects on macroeconomic issues, them to their effects on
and provides information in speaker macroeconomic issues, or does not
notes
provide information in speaker
notes
Policy Actions
Analyzes new monetary policy
Analyzes new monetary policy
actions undertaken by the U.S.
actions undertaken by the U.S.
government throughout the time
government throughout the time
period by describing their intended period, but does not describe their
effects, uses macroeconomic
intended effects, does not use
principles to explain the actions,
macroeconomic principles to
and provides information in speaker explain the actions, or does not
notes
provide information in speaker
notes
Does not analyze new monetary
policy actions undertaken by the
U.S. government throughout the
time period
30
Impact
Comprehensively explains the
impact of the new monetary policy
actions on individuals and
businesses within the economy by
integrating the macroeconomic
data and principles, and provides
information in speaker notes
Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Explains the impact of the new
monetary policy actions on
individuals and businesses within
the economy, but is not
comprehensive, does not integrate
the macroeconomic data and
principles, or does not provide
information in speaker notes
Does not explain the impact of the
new monetary policy actions on
individuals and businesses within
the economy
30
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization that
prevent understanding of ideas
10
Earned Total
100%
…
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