Economics for Managers: Student Guide 1

Economics for Managers

BUS5030

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Week Three

Business Programs

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 Economics for Managers: Student Guide 2

Week Three Introduction:

Macroeconomics studies both fiscal and monetary policy. Fiscal policy refers to the
government impact on macroeconomics through taxing and spending policy. The
monetary policy in the U.S. is determined by the Federal Reserve Bank, which includes
actions that cause changes in the money supply.

Week Three Objectives:

1. Examine the basic components of macroeconomics.
2. Compare and contrast aggregate supply and aggregate demand.
3. Examine the U.S. fiscal policy.
4. Compare the Keynesian View to the U.S. fiscal policy.

Week Three Course Materials:

OpenStax College. (2016). Principles of economics. Retrieved from

http://cnx.org/contents/aWGdK2jw@11.344:JgDXaOLP@11/Introduction

Week Three Reading:

Read this assignment prior to starting your course work for this week.

Principles of Economics
Chapter 19: The Macroeconomic Perspective
Chapter 24: The Aggregate Demand/Aggregate Supply Model
Chapter 14: Poverty and Economic Inequality (Review)
 Economics for Managers: Student Guide 3

Week Three Schedule:

Learning Activity Points Type of Due Date

Possible Activity
3.1 Devotional 5 Discussion Due by the end of the week.
3.2 Macroeconomic 20 Discussion Initial postings are due by
Discussion the fourth day of the week.
Responses are due by the
end of the week.
3.3 Aggregate 45 Exercise Due by the end of the week.
Graph Exercise
3.4 WK3 Economic 10 Discussion Initial postings are due by
Journal Discussion the fourth day of the week.
Responses are due by the
end of the week.
3.5 WK3 Economic 25 Journal Due by the end of the week.
Journal
3.6 Fiscal Borrowing 20 Discussion Initial postings are due by
Discussion the fourth day of the week.
Responses are due by the
end of the week.
3.7 Keynesian View 50 Paper Due by the end of the week.
Paper
Total 175
 Economics for Managers: Student Guide 4

Learning Activity 3.1: Devotional

23 Whatever you do, work at it with all your heart, as working for the Lord, not for human masters,
24 sinceyou know that you will receive an inheritance from the Lord as a reward. It is the Lord
Christ you are serving.

Colossians 3:23-25 New International Version (NIV)

In Gungor’s book, The Crowd, The Critic, and The Muse: A Book for Creators (2012), the
importance of doing what we do for God’s purpose, rather than man’s, is discussed.
Living in a “first world” country, in a capitalistic economic system, there are things we
need to be aware of to respond wisely to our situation. Review Hopler’s (2012) discussion
on the book at the link below.

Objectives

 Apply Christian principles in critical thinking and decision making.

Resources
Hopler, W. (2012, November 13). How to create what God leads you to create [Blog

post]. Retrieved from http://www.crosswalk.com/family/career/how-to-

create-what-god-leads-you-to-create.html

Instructions
1. After reading the devotional above, discuss how you can apply the devotional on
the aspects of “first world” and capitalism.
a. Consider how a Christian can wisely respond to these concepts and also
what the personal application is for you.
2. Post your thoughts in the discussion forum titled 3.1 Devotional.
3. Response to the posts of other students is not required, but is encouraged.

Grading Guide:

3.1 Devotional Points: 5

 Economics for Managers: Student Guide 5

Learning Activity 3.2: Macroeconomic Discussion

Introduction and Purpose of Assignment

In this discussion we’ll be looking at macroeconomics and how it applies to business.

Objectives

 Examine the basic components of macroeconomics. (3.1)

Theory and Context

Economics covers two basic approaches: microeconomics and macroeconomics. These
two areas focus on two different drivers of the economy. While microeconomics
considers the behavior of individuals and businesses in response to supply and
demand, macroeconomics takes a broader view of items that impact the economy.

Instructions
1. In this discussion,
a. Discuss macroeconomics and how it differs from microeconomics.
b. Include why the understanding of macroeconomics is important for
business managers.
2. Post your responses in the discussion forum titled 3.2 Macroeconomic Discussion.
3. Use the Discussion Rubric below to ensure you have met all the criteria for this
assignment.

Discussion Rubric:

DISCUSSION F level D level C level B level A level

Postings do Postings do Postings are Postings are Postings (min.
not address not clearly lacking in somewhat 200 words) are
the topic. address the substance and researched well researched
Content topic or else only add and offer some and involve
40% they repeat minimal analysis of the thoughtful,
what has information to assignment. detailed
already been the discussion. analysis and
said. critical
thinking.
There is no There is little There is at There are at There are at
interaction substance in least one least two least two very
with other the interaction substantive somewhat substantive
individuals. with other interaction or substantive interactions
individuals. there are interactions or with other
Interactive multiple one very individuals
interactions substantive (min. 50 words
Responses
that are not interaction each).
30%
 Economics for Managers: Student Guide 6

substantive with other

with other individuals. Student is
individuals. actively
Student is engaged in
Student shows responding as discussing the
little initiative required but is topic and
in conversing. not adding giving valuable
any new ideas. insights.
Initial Initial Initial Initial Initial
responses are responses are responses are responses are responses are
posted on the posted on the posted on the posted on the posted on the
seventh day of sixth day of fifth day of the fourth day of fourth day of
the week. the week. week. the week. the week.
Timeliness
Interactive Interactive Interactive Interactive Interactive
20%
posts are not posts are done posts are done posts are not posts are done
done in time in time to in time to done on two on two
to provide provide other provide other different days. different days.
other students students students
sufficient time sufficient time sufficient time
to respond. to respond. to respond.
Standard Standard Proper Proper Proper
grammar grammar grammar, grammar, grammar,
mechanics are mechanics are spelling, spelling, spelling,
Mechanics unacceptable. inadequate for punctuation, punctuation, punctuation,
10% this level of and standard and standard and standard
student work. English are not English are English are
completely used. Citations used. Citations
used. Citations are missing are included as
are missing. when called needed.
for.

3.2 Macroeconomic Discussion Points: 20

Learning Activity 3.3: Aggregate Graph Exercise

Introduction and Purpose of Assignment

Aggregate supply and aggregate demand is often expressed in graphical form.
Understanding the information that the graph reflects can help in understanding the
concept.

Objectives

 Compare and contrast aggregate supply and aggregate demand. (3.2)

 Economics for Managers: Student Guide 7

Instructions
1. Complete Problem #59 at the end of Chapter 24 of the textbook. This problem
refers to the example from “Work It Out” in the same chapter.
2. Submit the exercise to your facilitator as an attachment in the dropbox titled 3.3
Aggregate Graph Exercise by the end of the week.

Grading Guide:

3.3 Aggregate Graph Exercise Points: 45

Learning Activity 3.4: WK3 Economic Journal Discussion

Introduction and Purpose of Assignment

For this assignment you will be working on an economic journal. The economic journal
will have assignments specific to its objective. The economic journal will tie current
economic situations to the economic theories addressed in the course.

Objectives

 Examine the U.S. fiscal policy. (3.3)

Instructions
1. Find an article on the current U.S. federal economic policy. Summarize the article
and post your summary in the WK3 Economic Journal discussion forum.
2. While the summary of your article is included as a post in this discussion, the
post itself is not graded as part of the discussion. Posts must focus on the
connection of the article to economic concepts being discussed in order to receive
credit.
3. After posting your article, respond to the above in the discussion forum titled 3.4
WK3 Economic Journal Discussion.
4. Use the Discussion Rubric referenced earlier in this document to ensure you have
met all the criteria for this assignment.

Discussion Rubric: (above)

3.4 WK3 Economic Journal Discussion Points: 10

 Economics for Managers: Student Guide 8

Learning Activity 3.5: WK3 Economic Journal

Introduction and Purpose of Assignment

For this assignment you will be working on an economic journal. The economic journal
will have assignments specific to its objective. The economic journal will tie current
economic situations to the economic theories addressed in the course.

Objectives

 Examine the U.S. fiscal policy. (3.3)

Resources

 Journal Page Template located in the Course Documents in e360.

Instructions
1. From insights gained from the WK3 Economic Journal Discussion, reflect and
write on the economic concept in light of the article and the class discussion.
2. Use the downloadable Journal Page Template as a guide for this activity.
3. Basic APA formatting is required. The assignment should contain a title page
and headers along with correctly formatted references and citations where
appropriate.
4. Submit the journal to your facilitator as an attachment in the dropbox titled 3.5
WK3 Economic Journal by the end of the week.

Grading Guide:

3.5 WK3 Economic Journal Points: 25

Learning Activity 3.6: Fiscal Borrowing Discussion

Introduction and Purpose of Assignment

Businesses, universities, and governments often borrow money to support current
operations and provide capital for growth. The issuance of bonds is one way that
money is borrowed. Bonds are debt instruments that require the principle and interest
to be paid at maturity. While debt can be used positively, too much debt can be a
problem.
 Economics for Managers: Student Guide 9

Objectives

 Examine the U.S. fiscal policy. (3.3)

Resources

 Website: U.S. debt clock: http://usdebtclock.org/

Instructions
1. In this discussion, consider:
a. The relationship of fiscal borrowing on the economy.
b. The pros and cons of the current debt situation in the U.S.
c. The impact of the current U.S. debt on the economy, household incomes,
and economic growth in the U.S. (refer to the website above).
2. Post your responses in the discussion forum titled 3.6 Fiscal Borrowing Discussion.
3. Use the Discussion Rubric referenced earlier in this document to ensure you have
met all the criteria for this assignment.

Discussion Rubric:

3.6 Fiscal Borrowing Discussion Points: 20

Learning Activity 3.7: Keynesian View Paper

Introduction and Purpose of Assignment

You will be completing a paper this week comparing the Keynesian view to the U.S.
fiscal policy – including the use of an economic stimulus.

Objectives

 Compare the Keynesian View to the U.S. fiscal policy. (3.4)

Theory and Context

The Keynesian view focuses heavily on aggregate demand. Keynesian’s view increased
government spending as a way to directly increase aggregate demand. Keynesians
argue that the correct use of an expansive or restrictive fiscal policy can control the
economic conditions of a country.
 Economics for Managers: Student Guide 10

Resources
PROLITCAL RADIO SHOW. (2008, October 14). What is Keynesian economics [Video

file]? Retrieved from http://www.youtube.com/watch?v=btRWU_Q50QA

Instructions
1. Write a 2-3 page paper that addresses the following.
2. To achieve maximum points for content and analysis, the following elements
need to be thoroughly addressed.
a. Compare and contrast the Keynesian View to current U.S. fiscal policy.
b. Discuss how the stimulus that was done in 2008-2010 relates to the
Keynesian View.
c. Analyze if a stimulus approach helps the economic position of the country
in the long term.
3. Provide at least three sources.
4. APA formatting is required. Reference the APA formatting documents available
in the Course Documents in e360 if needed.
5. Use the Paper Writing Rubric below to ensure you have met all the criteria for
this assignment.
6. Submit the paper to your facilitator as an attachment in the dropbox titled 3.7
Keynesian View Paper by the end of the week.

Rubric: Paper Writing Rubric

3.7 Keynesian View Paper Points: 50