Create a 5 slide Microsoft® PowerPoint® presentation to present to the organization’s Executive Committee.
Include the following items:
- Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
- Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply.
- Explain how monetary policy affects interest rates and aggregate demand.
- Analyze how fiscal policy affects interest rates and aggregate demand.
- Evaluate why policymakers face a short-run trade-off between inflation and unemployment.
- Evaluate why the inflation-unemployment trade-off disappears in the long run.