The topic selected will be related to economics.

This is to gauge your general understanding of the current economic events that take place every day in our lives. It is to force you to think out of the box; broaden your horizon and to do some research besides reviewing your textbook.

Instructions:

1. Write 1-2 pages on the given topic.
2. You can include addendums but that will not be considered as a part of the report.
3. Please use 12 font size.
4. Submit your report via Turnitin on Blackboard; open the folder and there is an option to attach your report.

Topic:

“At the start of 2017, the forecasters correctly predicted the Federal Reserve would raise interest rates three times by the end of the year, and their other forecasts were all reasonably close to the mark. They saw a 4.3% unemployment rate at year’s end. It was actually 4.1%. They thought GDP would expand 2.3% on the year, versus actual growth of 2.5%. They saw headline inflation of 1.9% and core inflation of 1.7%, versus actual figures of 1.7% and 1.5%.”

-Wall Street Journal

Based on the above information, analyze the five key indicators of Economic Growth: federal-funds rate, unemployment rate, GDP growth, inflation, core inflation.

Also, discuss how these 5 indicators impact real interest rates.

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