This assignment will help students develop an understanding of what money is,  what forms money takes, how the banking system helps create money, and  how the Federal Reserve controls the quantity of money. Students will  learn how the quantity of money affects inflation and interest rates in  the long run, and production and employment in the short run. Students  will find that, in the long run, there is a strong relationship between  the growth rate of money and inflation. Students will review the basic  concepts macroeconomists use to study open economies and will address  why a nation’s net exports must equal its net capital outflow. Students  will demonstrate the relationship between the prices and quantities in  the market for loanable funds and the prices and quantities in the  market for foreign-currency exchange. Student will learn to analyze the  impact of a variety of government policies on an economy’s exchange rate  and trade balance. 

Assignment Steps 

Resources: National Bureau of Economic Research 

Develop a 2,100-word economic outlook forecast that includes the following:

  • Analyze the history of changes in GDP, savings, investment, real  interest rates, and unemployment and compare to forecast for the next  five years.
  • Discuss how government policies can influence economic growth.
  • Analyze how monetary policy could influence the long-run behavior of  price levels, inflation rates, costs, and other real or nominal  variables.
  • Describe how trade deficits or surpluses can influence the growth of productivity and GDP.
  • Discuss the importance of the market for loanable funds and the  market for foreign-currency exchange to the achievement of the strategic  plan.
  • Recommend, based on your above findings, whether the strategic plan can be achieved and provide support. 

Use a minimum of three peer-reviewed sources from the University Library. 

Format your paper consistent with APA guidelines.