 For the term paper students will choose an article related to any of the topics we have covered in the online coursework. The articles could be found on msnbc.com, nytimes.com, economist.com., cnn.

 For the term paper students will choose an article related to any of the topics we have covered in the online coursework. The articles could be found on msnbc.com, nytimes.com, economist.com., cnn.
Page 1 of 8 Term Paper There will be one term paper for the course that is due on the date indicated on the course syllabus / Canvas by 11:59 pm. Please refer to syllabus for the due date. The paper is designed to assess the students’ social responsibility, knowledge of civic responsibility and the role of economics knowledge about it. The paper will also assess student’s ability to communicate the economics concepts learned in this course (SR & C S).  For the term paper students will choose an article related to any o f the topics we have covered in the online coursework . The articles could be found on msnbc.com, nytimes.com, economist.com., cnn.com. You may also find articles on local newspapers as well. Or a google search w ill help students find articles on the current economic events easily.  After you pick an economic s article from the internet or from local newspapers, you are required to write an analysis of the article you have selected to work on. You will find the detailed explanation on how to write an analysis of an article below.  Students may work together for the term paper and bounce ideas off each other or discuss the articles together; however, each student must submit their individual paper written on their own. Besides, every student must pick up a different article.  Make sure you include the article you have chosen at the end of your paper. Please copy and paste the article at the end of your paper. Do not just give a webpage link, as there may be some technical issues or subscription issues on certain websites (for example New York times, there is a limi t for maximum number of free articles you can read per day) and the article would not open on my computer.  Papers submitted without the related article the student has chosen will not be graded . The Length  The length of the paper will be minimum 5 paragraphs and 1 -3 pages, 1.5 space and 12 size fonts. If you use other resources to back up your opinion, you must cite the resource in APA style. If you need help with APA style formatting, you may contact writin g center or go online https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/general_format.htm l The paper is your own understanding of the article based on what you have learned in class .  Mini mum of 750 words. How to write the paper:  Step 1: Read the article you have found on any of your resources. Make sure you comprehend the article well. Try to investigate and find out the meaning of any concept or term that you do not know that is mentioned in the article.  Step 2: Start writing your draft. Here is how: o Give your own paper a nice title. o The first paragraph will summarize the original article. o In the following paragraphs you will make an argument/ evaluation in your analysis using appropriate terminology. o Present your position on the topic . Do you agree or disagree with what is covered in the article? o In the last paragraphs, paragraph 4 or 5 make your recommendations. Or you may open up the floor for further questions/dicsussions Page 2 of 8 o Please make sure you refer to the concepts/terms we have learned in this course, while you are making your analysis on the article. o Ple ase make sure to explain how the concepts handled in the articled along with the ones we have learned in class would help students develop personal responsibility, social responsibility and civic responsibility in the context of our economy  There is no ne ed for a separate cover page or abstract/ summary page. You need to give a title to your paper.  Make sure you write your name, your course name and course section along the with the title and author of the article you have chosen to write on .  Step 3: Copy and paste the entire article that you analyzed on your paper at the end of your Term Paper. o Remember to add a link to your article and o Remember to write the name of the article, the author of the article, cite where it was published and the date as well.  Step 4: Submit your term paper on Canvas under Assignments link. (You will submit it on Turnitin inside that link) Please take a look at the following guideline about analyzing an article. It is a great resource for article analysis: Learn How to Analyze an Article In 5 Easy Steps Written by Jacob Thomas Source: https://toggl.com/blog/how -to-analyze -an -article When you surf the net looking for information, do you quickly breeze through various blog posts, or do you take the time to really dig deep and examine them? If you’re a “breezer,” this blog post on how to analyze an article will (hopefully!) change your approach. If you consider yo urself more of an “examiner” alre ady, this post will teach you a simple process to better analyze the information you consume. Why analysis is so important Before you dive in and start analyzing every article on the internet, it would behoove you (good word, behoove!) to understan d why critical analysis is so important in the first place. Otherwise, you’ll just be analyzing for the sake of it, which isn’t productive. So why is analysis a critical step when digesting new information? Reason 1: It will help you remember what you’ve learn ed Many articles throw a lot of information at the reader, really quickly. It’s easy for important details to get lost in the av alanche. But when you analyze an article correctly, you take time to break the subject matter down into its most crucial points. Page 3 of 8 We’ll explore this step further in a later section of this post. But for now, just ask yourself: What’s easier to remember, a few well -defined statements (main article points), or an entire blog post worth of information? The answer is clear. When you analyze the articles you read, you give your mind something much more tangible and concrete to hold on to. Reason 2: It will sharpen your critical thinking skills You can’t analyze an article without evaluating the words the author has written. This eval uation process will sharpen your critical thinking skills, which are extremely important in all areas of life. They’re also highly valued by employers in every industry. Critical thinking is defined as “the ability to analyze information objectively and make a reasoned judgment.” For example, Johnny, a customer support manager, analyzes the many customer feedback surveys his department receives each mon th. Based on his findings, he’s able to make the necessary updates to the company’s customer service tr aining program. This is critical thinking in action. This is valuable. Reason 3: It will make you a more valuable professional The ability to analyze an article will make you a more valuable professional. If you’re able to remember more of what you rea d, you’ll be more knowledgeable than your colleagues. Knowledge, as they say, is power. If you develop your critical thinking skills, you’ll be much more adept at problem solving, identifying opportunities, and av oiding common professional pitfalls. You’ll be able to evaluate information more efficiently and make better decisions for yourself and your company. Both of these skills, memorization and critical thinking, will make you, as a professional, indispensable to the company you work for. How to analyz e an article like a pro Now that you’ve been educated on the importance of article analysis, you’re now surely hellbent on learning how to do it prop erly. You’ll need to learn and complete five steps to analyze an article like a pro. After you begin to e mploy it, you’ll quickly reap the rewards and likely enjoy the article reading process more. Let’s get to those steps, shall we? Step 1: Get a feel for the article’s contents The very first thing you need to do to successfully analyze an article is read it all the way through. Obvious? Sure, but it’s still an important step! Page 4 of 8 Start with the title. If it’s been written well, it should convey the overarching theme the author is writing on and what the major takeaway should be. Then skim through the subheads . These should signify the secondary points and proofs the author is using to reinforce his or her claims. Finally, go ahead and read the entire article. But don’t just read for the sake of it. Be intentional about it. Do your best to understand where the author is coming from and what points he/she is trying to get across. Step 2: Investigate any information you don’t understand If the author has done a good job writing the piece, there should be at least one bit of new information included in the article. This might be new research, a fresh perspective, or an original approach. It may be something you don’t fully understand, especially if the topic is foreig n to you. To analyze this article properly, you need to dig deeper. Research the authority of the author, the claims they’re making, and any words you don’t understand. The idea is to be able to fully comprehend the content contained in the article. If you don’t you won’t be able to analyze it . Step 3: Summarize the main points in your own wor ds After reading the article and investigating any information that wasn’t immediately clear, you should be able to summarize th e main points of the piece in your own words. If you can’t, go back and re -read the article. Why is summarizing important? Bec ause it will tell you if you have a solid handle on the information or not. To really analyze an article, you have to underst and the points the author is trying to make. We recommend writing your summary down on a piece of paper, but this is optional. At the very least, speak your summary out loud to ensure complete comprehension. Step 4: Formulate your own opinion on the subject matter Remember when we talked about critical thinking earlier? Well, this is where that skill comes into play. What do you th ink of the article you just read and summarized? Was it well -written? Was the information presented in a clear and compelling way? More importantly, do you agree with the conclusions the author drew? Why or why not? Figuring out whether you wholeheartedly accept the writer’s position, vehemently oppose it, or find yourself somewhere in the middle is the main point of this exercise. Be sure to block out an adequate amount of time for this step! Page 5 of 8 Once you do, you can formulate your own opinion on the topic. Step 5: Implement your newly acquired Knowledge After you’ve acquired new information, filtered it through your individual lens –the way you see the world and the people in it –and formed your own opinion on the topic, you can then implement y our new knowledge or process. This is another reason why approaching every article you read with an analytical eye is so important. You can take what you’ve learned and feel confident that it will propel you forward because you thoroughly vetted the inf ormation. Or, if you disagree with the author of the article, you can confidently say so and adopt another approach. Either way, you win! Article analysis in action That’s it, how to analyze an article in five convenient steps. Pretty simple, right? We’r e glad you think so! But how about we test your newfound knowledge? Here’s what we’d like you to do: apply everything you just learned to this blog post. That’s right. We want you to analyze the article you just read, right now. We promised you a little audience participation section at the beginning of the post, right? Here it is. You’ve already completed step one by reading this post. Now you need to carry on with the other four steps. And here’s an extra challenge, if you’re up for it: Why not try ti ming yourself with our time tracker during the exercise? Do you find yourself spending more time on the text than you otherwise would (if you’re a “breezer”), or does the five -step process actually help you read faster (if you’re an “examiner”)? After yo u’ve fully analyzed this piece, post your thoughts in the comment section below. We’ll read and respond to every entry and we can’t wait to hear your insights! Analyze this! As we’ve just seen, deep article analysis is an essential skill for ambitious professionals. It will help you better remember the things you read about, improve your critical thinking skills, and make you a more valuable employee or successful business owner. To effectively analyze an article, you first need to read it in its entir ety. Do you best to understand where the author is coming from and investigate any information that doesn’t make sense to you. This could be claims they’ve made or definitions of words they’ve used. Next, you need to be able to summarize the main point of the article. This will tell you if you have a solid handle on the information or not. Once you’re able to summarize the piece, you can then formulate your own opinions on the topic. Do you agree or disagree with the author? Why? Page 6 of 8 Finally, now that you’ve adequately analyzed the article, you can implement your newly acquired knowledge. How will this new information affect your current mindset, approach to problems, or business processes? Don’t forget to participate and analyze this article! We’d love to he ar your thoughts in the comments below. Happy analyzing!  If you are unsure how to get started for the assignment or how to start and write the paper or any related issue, please feel free to contact me right away. Rubric for the Term Paper Including Points Page 7 of 8 Criteria Novice Apprentice Proficient Distinguished 0 to 9 points 10 to 15 points 18 to 24 points 25 to 30 points Content No submission or unrelated content to the actual article chosen. The student displayed adequate coverage of the topic, but the details were lacking . Student analyzed the article and the topic s covered in the original article using appropriate level of detail s, with limited support for his/her point. Student displayed an exceptional coverage of the content using many details and showing insightful understanding of the concepts with supporting examples and proof. 0 to 9 points 10 to 15 points 18 to 24 points 25 to 30 points Critical thinking No submission, no proof of critical thinking analysis of the article. Points not related to the original article chosen . Minimally analyzed the issue for basic conclusions but avoided evaluation of the whole article. Evaluated the issues well but did not describe the overall meaning and impact of the concepts in relation to the context of economics. Conclusion is meaningful to a certain level. Critically evaluated the issue and described the meaning of the terms in the context of economics very well. Has an appropriate conclusion with exceptional clar ity. Multi layered analysis with evidence of critical thinking. 0 to 9 points 12 to 1 7 points 18 to 24 points 25 to 30 points Communication No submission, unclear communication about the original topics, superficial approach Student communicated the topic s covered adequately but not very effectively. Used some kind of vague language . Student communicated the topic s covered in the article with appropriate level of details effectively and clearly. I nterpreted the ideas within the article in his/her own words. Student communicated the topic/topics covered in the article by giving examples and providing proofs from the article with considerable amount of details. 0 to 0 points 2 to 2 points 4 to 4 points 5 to 5 points Format, Length and Overall professionalism No submission or did not meet the length or general formatting requirements. The article was not copied and pasted at the end of the paper. The paper met the minimum requirement for length, general grammar/syntax errors. Minimally followed APA style . The original article was sent by email. The paper was well organized in terms of formatting, writing style and minimum level of grammatical errors. Mostly complied with APA style. The paper was submitted through the correct means. The original a rticle was added at the end of the paper. The paper was organized perfectly in terms of style; including a title for the paper, the length of the paper met and exceeded the requirement s, the paper was free of grammar/syntax errors. APA style was used corre ctly. The original article was copied and pasted neatly at the end of the paper. Other resources used were listed in appropriate style 0 to 0 points 2 to 2 points 4 to 4 points 5 to 5 Social responsibility, personal responsibility, knowledge of civic responsibility and the role of economics knowledge about it No submission or the paper did not mention at all about personal responsibility, social responsibility, knowledge of civic responsibility and the role of economics knowledge about it. Student was able to associate personal responsibility/ social responsibility /civic responsibility with the concepts covered in the article chosen. Uses limited level of creativity or originality to synthesize the economics concepts with a responsible citizen’s role in the economy. Student associated social responsibility with the concepts covered in the article chosen. Addressed in detail on how to develop personal responsibility/ social responsibility / civic responsibility from economics perspective. Demonstrates a go od level of creativity or originality to synthesize Student builds up an exceptional connection on how personal responsibility / social responsibility /civic responsibility could be as sociated with economic terms. Student shows an exceptional level of awareness of a responsible citizen’s role in the economy. Clearly demonstrates the learning outcomes of this course Page 8 of 8 * The assignments will be submitted via Turnitin on Can vas . Late submission will not be accepted. The following are some common problems noticed on the term papers : 1. The paper lacks focus and is not well organized. A major reason why this happens is the article students choose is really a complicated one and talk about many different topics . After reading the article, students get confused and they cannot handle that many topics at the same time. To avoid this problem, p lease make sure you pick a very simple article that you can easily understand. 2. There are not enough analyses and explanations in the paper . Many times, students state some ideas or conjectures without explaining step by step the logic behind these ideas or conjectures. 3. The use of quotations to substitute for the explanations. A common mistake that the students make in their papers is that they use quotations from the original articles AS the arguments. It is acceptable for students to use some ideas suggested by others, yet students should try to explain the ideas in their own words and should not simply copy the quotations without their own explanations. 4. Choosing a piece of news from an online source instead of a real economic analysis article. The economic news contains many statistics and numbers within their writing, but it makes it difficult for a student to analyze that news article. Therefore, students should avoid choosing statistical news articles for their paper. If you are unsure whether the article you have cho sen is a good one or not, please feel free to ask me through course messages. 5. REMEMBER : Please copy and paste the original article at the end of your paper. Please do not provide a link for your original article a s some links would not open or some links require subscription, and it would not be possible for me to read the entire article. 6. Remember to write the name of the author, publishing date and the source of the article. Here is another resource to help you write your analysis: A Brief Overview of the Article Analysis: https://www.gvsu.edu/cms4/asset/CC3BFEEB -C364 -E1A1 -A5390F221AC0FD2D/business_article_analysis_gg_final.pdf the economics concepts with a responsible citizen’s role in the economy. contributed to internalizing his/her role of a responsible citizen.
 For the term paper students will choose an article related to any of the topics we have covered in the online coursework. The articles could be found on msnbc.com, nytimes.com, economist.com., cnn.
1 The Big Deal in Amazon’s Antitrust Case-written by Shira Ovide Amazon: the Devil in Disguise The article I chose to analyze is called The Big Deal in Amazon’s Antitrust Case . Written on May 25, 2021, the article goes into why the attorney general for the District of Columbia sued Amazon. The article claims that Amazon has broken many antitrust regulations that unfairly crush its competition. Amazon is not the first to face a lawsuit for breaking antitrust laws, rather the company now joins other powerful tech giant companies like Google and Facebook in this new legal battle. The centerpiece of Rancine’s lawsuit revolves around the claims made directly by many of the independent merchants on Amazon’s digital mall. If these sellers list their products at a lesser price on their own websites or on another shopping site, Amazon punishes them by making the product all but invisible on Amazon’s site. Such anticompetitive practices allow Amazon to dictate prices across all shopping sites, thereby making prices higher for consumers. The author continues by directly quoting Amazon’s defense at why the company has full freedom to hide products that are not competitively priced. The company does not view its actions as a transgression, nor does it take a stance on whether its actions are right or wrong in the market economy. The article finishes by describing how the White House intends to build its legal grounds by highlighting how Amazon threatens its competition to raise prices. My personal stance generally agrees with the majority of the arguments made in the article. Amazon undoubtedly participates in anti-competitive practices. Although the company tries to defend itself by claiming that sellers are free to list their products at whatever price they want, this doesn’t justify Amazon’s subsequent response as fair or competitive. This response being that when merchants price their products lower on their own site, Amazon makes this prospective product almost disappear from the Amazon marketplace. While companies technically have the legal freedom to do what they want, Amazon leaves them with no choice but to list their lowest prices on Amazon’s website. This creates a system which allows Amazon to dominate the online shopping market as products have the lowest prices on its website. However , this in turn raises prices for all consumers. I believe this is textbook anti-competitive behavior . 2 Moreover , the author shows a slight bias against Amazon, as it does not defend the company’ s actions and provides strong evidence for the lawsuit. However , the author does close off the article by saying it is unsure whether or not tech giants like Amazon leave consumers better or worse of f. I, on the other hand, disagree with the author ’s claims of Amazon being a monopoly . Firstly , the author cites Amazon as hurting the public in the same way that Carnegie steel and V anderbilt railroads did. Our textbook defines a monopoly as a firm that acts as “the sole seller of its product and if [the] product does not have any close substitutes“ (Ovide, 2021). However , the products that are sold on Amazon have similar products which are easily available on other marketplaces. Moreover , monopolies act as inflationary forces. While the author believes that Amazon raises prices for consumers, I once again disagree. For years, consumers gravitated towards Amazon for its commendable lower prices. Under this, Amazon is actually a deflationary force with its lower prices. This is easily distinguishable from a monopoly with higher prices. This being said, Amazon still exhibits some monopolistic practices like lowering competition by threatening independent merchants on the market. I believe that Amazon fits better under the title of a natural monopoly in which “a single company can supply a product or service at a lower cost than any potential competitor , and at a volume that can service an entire market” (Investopedia, 2022). While other competitors still exist,Amazon could single handedly supply the entire market. This is a key portion of the article to which my views dif fered from that of the author ’s. This article focuses heavily on competition and its role in the markets. A robust American economy depends on healthy market competition. Economic fundamentals show that when businesses must compete for customers, the result is cheaper pricing, better goods and services, more variety , and more innovation. Monopolies, on the other hand, strive to eliminate competition which lowers economic ef ficiency. Thus, monopoly markets lead to products costing more than they should because of the loss of competition. This raises consumer prices and creates an economic loss to society . As members of society , we have a duty to focus on our social and civic responsibilities. Social and civic responsibility require us to help shape society in a positive manner with our actions. However , by fueling big tech companies that have monopolistic practices like Google, Facebook, and Amazon, we are failing our society . It is vital that we educate ourselves on the 3 negative impact antitrust practices have on society and do our best to avoid rewarding their behavior . 4 Citations Mankiw , N. G. (2021). Principles of Economics. 9th Edition. Boston, MA: Cengage. Natural Monopoly Definition . (2022, March 21). Investopedia. https://www .investopedia.com/terms/n/natural_monopoly .asp#:%7E:text=What%20Is%2 0a%20Natural%20Monopoly%3F Ovide, S. O. (2021, May 25). The Big Deal in Amazon’s Antitrust Case . The New York Times. Retrieved June 26, 2022, from https://www .nytimes.com/2021/05/25/technology/amazon-antitrust-lawsuit.html?smid=u l-share 5 Article https://www .nytimes.com/2021/05/25/technology/amazon-antitrust-lawsuit.html The New York Times The Big Deal in Amazon’s Antitrust Case- by Shira Ovide Published May 25, 2021 Updated June 22, 2021 Hoo boy, this is a moment. A government authority in the United States has sued Amazon over claims that the company is breaking the law by unfairly crushing competition. The lawsuit, filed on Tuesday by the attorney general for the District of Columbia, joins the recent government antitrust cases against Google and Facebook. These lawsuits will take forever, and legal experts have said that the companies likely have the upper hand in court. The D.C. attorney general, Karl Racine, however, is making a legal argument against Amazon that is both old-school and novel, and it might become a blueprint for crimping Big Tech power. It’s a longstanding claim by some of the independent merchants who sell on Amazon’s digital mall that the company punishes them if they list their products for less on their own websites or other shopping sites like Walmart.com. Those sellers are effectively saying that Amazon dictates what happens on shopping sites all over the internet, and in doing so makes products more expensive for all of us. Racine has made this claim a centerpiece of his lawsuit. Amazon has said before that merchants have absolute authority to set prices for the products they sell on its site, but that ignores that the company has subtle levers to make merchants’ products all but invisible to shoppers. If a merchant lists a product for less on another site, Amazon can respond by making it more cumbersome for a shopper to buy the item. Amazon, in a statement to my colleagues, said that merchants have the freedom to list and price their products however they wish, but that Amazon can chose “not to highlight” products that are not competitively priced. 6 Why is the attorney general’s claim a big deal? Legal experts have said that it’s tricky to sue technology giants for breaking antitrust laws. That’s partly because of the ways U.S. competition laws have been written, interpreted and enforced over the decades. But the lawsuit against Amazon bypasses this by saying that the tech giant hurts the public the same way that 19th-century railroads and steel giants did — by strong-arming competition and raising prices at will. Last year, the legal scholar and Big Tech critic Tim Wu told me that he believed that those price claims were the strongest potential antitrust case against Amazon on legal grounds. (He has since been picked to advise the White House on corporate competition issues.) I don’t know if any of these lawsuits against Big Tech will succeed at chipping away at the companies’ tremendous influence. And I can’t definitively say whether we’re better or worse off by having a handful of powerful technology companies that make products used and often loved by billions of people. It has been remarkable, though, to see the evolution of thinking among some of the public and politicians, from justified awe of these companies and what they make to questioning the downsides of technologies and the at-times brazen companies behind them. It’s a sometimes unfair and noisy mess. But remember why we got to this point: Technology giants are among the most powerful forces in our world, and the price of power is scrutiny .
 For the term paper students will choose an article related to any of the topics we have covered in the online coursework. The articles could be found on msnbc.com, nytimes.com, economist.com., cnn.
Student Name Principles of M acroeconomics “All the recession warning signs this week” by Ramishah Maruf Are We Approaching a Recession? As many people have noticed and made peace with, the United States economy is not in its prime state and many things have indicated this shift in its status. The article I have chosen to analyze, “All the recession warning signs this week” by Ramishah Maru f, discusses some things that indicate a recession in the future for the United States. The article begins by addressing the elevated levels of inflation and mentions how the consumer price index has reached the highest the U.S. has seen in four decades. M aruf then mentions how “the Fed is raising interest rates at an aggressive pace” with hopes of reducing economic activity. He divides the remainder of the article into sections where signs of recession can be seen including “Copper Prices, Purchasing Manag ers Index, Consumer Sentiment, Gas prices, and Housing Slump.” In each section, the situation in relation to the condition of the world is described and most sections include factual evidence supporting the claims made in each of them. For example, copper prices have dropped “more than 11% in two weeks” and even though it is usually a high demand product, the “demand disappears when the economy contracts” (Maruf, 2022). This is how the ending portion of the article is structured, addressing the signs pointi ng towards recession with a brief explanation. The article itself was well written and easy to understand for someone familiar with the terminology used throughout. While is it not very technical, I feel like the article could have had more factual eviden ce to support each claim made about the indicators of a recession because even though we are experiencing some of the things in our daily lives, more statistics would have proved how each of these things indicate recession in the future. For example, the s ection about gas prices includes no information of percentage increase of gas prices compared to the past and only has a quote from an investment officer, Peter Boochvar, saying how the situation “has recession worries written all over it.” Aside from this , the article contained ideas that were easy to understand since I was already familiar with them, like consumer price index, inflation, and interest rates, and ideas that were easy to understand if I was not, like purchasing manager’s index. The author fa iled to include data displaying the changes seen now versus in the past and use it to construct their claim of why the economy could enter a recession because of how the Student Name Principles of M acroeconomics “All the recession warning signs this week” by Ramishah Maruf factors have changed. With the data, the article would have had more of a supported cl aim, and it would be more fact based rather than a piece displaying what the author has observed. After reading the article, I can confidently say that I agree with the information it contained and discussed. Even though I am no expert about the U.S. econ omy, I can recognize the changes to my lifestyle between rising prices in gas and housing. I do believe these factors point towards a recession however, I would agree more if more data was included about how each factor has changed over time and more of an explanation about how these changes specifically relate to a contracting economy. One thing I can’t seem to get, however, is the idea of how raising prices to lower economic activity assists with lowering prices. In my mind, and from what I have learned i n my economics class, lowering prices increases demand while increasing interest rates and inflation lowers demand. As mentioned in this article, the increasing prices helps with lowering economic activity which then lowers prices, which I understand, howe ver, wouldn’t the lower prices increase demand, therefore increasing prices all over again? If there were more details explaining this process/ cycle, I think I would have understood the benefit of decreasing economic activity for the world but without it, I disagree with the idea that reducing economic activity benefits the economy because I am confused how the prices wouldn’t rise right after. This article covers information ranging from the consumer price index to inflation, and even to interest rates, which are some of the most important, I believe, topics in economics. The consumer price index (CPI) and inflation go hand in hand as CPI is a method to measure inflation rates so as inflation increases, the CPI increases. The CPI is currently at an all – t ime high, so it is important to understand how inflation plays into it and influences the level it is at. This was easy to understand for me since I already knew both what CPI and inflation was and the relationship between the two. However, having the rela tionship between them explained would have made the article, and the ideas discussed in general, clearer and easier to understand. I would also recommend the author include more data besides quotes from credible people to support the information presented in each of the subsections like gas prices and housing slump. Furthermore, I would like to understand how reducing economic activity to then lower prices would help the economy when, in my mind, the lower prices would cause an increase in demand, Student Name Principles of M acroeconomics “All the recession warning signs this week” by Ramishah Maruf therefore increasing the prices all over again. Is this a cycle that I just have not realized or do the prices stay down once they reduce the first time? With all this to consider, everyone has personal, social, and civic responsibilities they must account for when dealing with the state of our economy. Socially and civically, one must remain informed about the state of not only their community but the world since one small change can make the world of a difference. For instance, gas prices. They may be high in one community but they are also high across the country so it is important to know what you can do to join the fight to combat the rising prices but also know what is out of your control. Personally, one should stay informed and educate the people around them about the economy because things like inflation and interest rates affect large groups of people. The more everyone understands, the more people can learn how to make good decisions about their lifestyles and the best things to do with their money. The eco nomy is constantly changing so understanding the ways to adapt makes the ups and downs, rising prices, a contracting economy, and/ or a change in lifestyle a whole lot easier. Maruf, R. (2022, June 26). All the recession warning signs this week | CNN bus iness . CNN. Retrieved June 26, 2022, from https://www.cnn.com/2022/06/26/business/recession – signs – roundup/index.html All the recession warning signs this week By Ramishah Maruf , CNN Updated 11:42 AM ET, Sun June 26, 2022 Student Name Principles of M acroeconomics “All the recessio n warning signs this week” by Ramisha h Maruf Summer 2022 First Five Weeks Powell: Recession aft er rate hikes certainly a possibility 01:16 New York (CNN) It’s the question everyone is asking: Are we about to enter a recession? A tepid stock market, soaring inflation, and rising interest rates have left Americans less than optimistic about the state of the economy. Consumer sentiment has plunged to a record low, according to a University of Michigan survey released last week, fueled by frustration over high prices. Earlier in June, the consumer price index jumped to its highest level in 40 years . The government’s primary inflation gauge saw prices surging 8.6% for the past 12 months. And now the Fed is raising interest rates at an aggressive pace as it looks to slow down economic activity. To be clear: we are not in a recession, at least not yet. But signs of an ec onomic downturn are cropping up all over, in sectors from commodities to housing . Here’s what CNN Business reported last week: Copper prices Prices for the metal hit 16 – month lows on Thursday after dropping more than 11% in two weeks — that’s bad news for investors who view copper prices as a bellwether for the global economy. Student Name Principles of M acroeconomics “All the recessio n warning signs this week” by Ramisha h Maruf Summer 2022 First Five Weeks Copper is widely used in construction materials, and it faces increased demand in an expanding economy. That demand disappears when the economy contracts. Prices shot up earlier this year when Russia, which accounts for 4% of global copper output, invaded Ukraine. Traders who were concerned about short supply began hoarding the metal. And now, copper prices are falling. “Copper prices are just starting to account for the fact that global growth is slowing,” Daniel Ghali, director of commodity strategy at TD Securities, told CNN Business’ Julia Horowitz. Purchasing Managers’ Index The index released by S&P Glo bal on Thursday found that US private sector output slowed “sharply” in June. Chris Williamson, chief business economist at S&P Global Market Intelligence, said producers of non – essential goods are seeing a drop in orders as consumers struggle with rising prices. The Fe d’s aggressive interest rate hikes are dampening the mood further. “Business confidence is now at a level which would typically herald an economic downturn, adding to the risk of recession,” Williamson told CNN Business’ Julia Horowitz. Consumer sentiment A closely followed University of Michigan survey released Friday found that US consumer sentiment hit a new record low in June – — the lowest recorded level since the university started collecting the data 70 years ago. The June index saw a 14.4% drop since May as consumers became increasingly alarmed about inflation. About 79% of those consumers said they expected bad times for business conditions in the upcoming year, the highest level for that metric since 2009. The percentage of consumers who blamed inflation for eroding their living standards, 47% according to the June index, is only one percentage point lower than the all – time high reached during the Great Recession. Student Name Principles of M acroeconomics “All the recessio n warning signs this week” by Ramisha h Maruf Summer 2022 First Five Weeks “As higher prices become harder to avoid, consumers may fe el they have no choice but to adjust their spending patterns, whether through substitution of goods or foregoing purchases altogether,” Joanna Hsu, Surveys of Consumers director, said. “The speed and intensity at which these adjustments occur will be criti cal for the trajectory of the economy.” Gas prices The good news: Americans could find some relief is on the way for gas prices. The bad news: It’s because traders are betting on a recession, CNN Business’ Allison Morrow said. As US drivers felt the pain at the pump, they began pulling back on gas this spring, reducing demand and bringing down the price. Though pullback of demand could bring temporary relief, it also points toward broader economic concerns. “This morning’s market action has recession worries writ ten all over it,” wrote Peter Boockvar, the chief investment officer at Bleakley Advisory Group, earlier this week. He put the odds of a recession this year at 99% because “nothing is 100%.” Housing slump Better news: A cool – down of the housing market may not hurt the economy and stock market. Prices have spiked, leaving homeownership out of reach for many Americans, and mortgage rates have spiked after the Fed’s rate hikes and a surge in bond yields. But Lennar, a homebuilder whose shar es are down nearly 45% this year, reported better than expected earnings on Wednesday and a 4% increase in new home orders. Lennar’s CEO, however, remained cautious, saying in the company’s second quarter earnings release that it’s a “complicated moment in the market.” Despite the slowdown in the housing market, experts are hopeful that it won’t spread to the economy the way the housing bubble burst in 2008 did. Student Name Principles of M acroeconomics “All the recessio n warning signs this week” by Ramisha h Maruf Summer 2022 First Five Weeks “Banks are in much better shape now, and they are not giving out loans to people with no credit or bad credit,” Michael Sheldon, chief investment officer with RDM Financial Group at Hightower, told CNN Business’ Paul R. La Monica. “If there is a recession, the impact on housing could be mild. There are not as many imbalances as we had before.” CNN Bu siness’ Julia Horowitz, Alicia Wallace, Allison Morrow and Paul R. La Monica contributed to this report.
 For the term paper students will choose an article related to any of the topics we have covered in the online coursework. The articles could be found on msnbc.com, nytimes.com, economist.com., cnn.
Page 1 Name: ……………… Course : Principles of Macroeconomics Course Section: 2301 The Original Article Title: A focus on GDP determines the strength of America’s recovery Author: The Economist Group Limited American GDP and GDI Under the article “A focus on GDP determines the strength of American’s recovery” we can find a different measuring tool apart from the standard gross domestic product ( GDP) to evaluate the state of a n economy at a given timefra me. The article demonstrates that the GDP’s accuracy is questioned because of gaps that occur between the GDP and the gross domestic income (GDI ), which is any money earned by means of goods and services. Overall, the gap betwee n GDI a nd GDP, or statistical discrepanc y, should be close but not perfectly aligned, if it is not the case, then the health of the economy would differ depending on the precision of either the GDP or the GDI . The article presents the COVID-19 pandemic, and if the GDP was accurate, its “economic output is still about 2% below its pre-pandemic trend,” signifying a more challenging path towards recovery; however, if the GDI was accurate, “the economy is 1.2% above trend,” signifying a greater advantage towards economic recover y. This shows that using the GDP alone cannot accurately demonstrate a n economic state or outcome Nevertheless, splitting the GDP and the GDI and finding its average, or gross domestic output (GDO), would increase the accurac y . GDO reduces the distance of statistical discrepancy in the inaccuracy of b oth GDP and GDI. For example, the article states that the GDP may be affected since “an undercounting of business investment i n GDP may be the most likely cause.” Another possibility could be that the GDI was miscalculated to be greater than its actual evaluation. For instance , many individuals would “reflect the prices of existing assets rather than production of new ones” and would later integra te capital gains into their income, but in realit y , capital gains do not account for GDI computations. Furthermore, since the GDP and th e GDI are accumula ted from different independent estimate s of output, the GDO has been found to greatly decrease measurement errors and a high prognosticator in distinction to GDP. Although GDO seems to be the most accurate a nd favorable solution, many individuals also see GDI calculations to be a favora ble alternative as well . The reasoning behind it is that GDI alone has claimed to be more precise in registering variations in the business cycle, and it has bee n more consistent with inflation than GDP. However, a problem with usi ng GDI is that its estimate appea rs afte r GDP Page 2 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited estimates. In the end, many economists and researchers are hoping to establish a more accurate GDP or “true GDP ” that is derived from GDP , GDI , several unemployment rates, and working hours in manufacturing. Throughout the article, I agreed to an extent on the fact that GDP shouldn’t be the onl y medium in which individuals should understand an economic state; however, I disagree that we should not acknowledge its capabilities. Apart from the GDP , I agree that GDO and GDI would be potential alternatives. . Nevertheless, these options should be mainly use d for future references on the economy. GDO would be a suitable alternative since it would decrease statistical discrepancy and increase the accuracy as a result of the combination of GDP and GDI . GDI would also be a viable alternative since it ex presses how much earnings are being accumulated from the GDP to create accurate data from many fluctuating scenarios. Even though GDP may be ranked lower regarding economic health prognostication, it should not be dismissed from its uses. Personally, GDP should only be used to calculate the economic size at that given moment, and decisions should be based on this data. A notable example would be the GDP per Capita. This is essential to economic stability since the GDP per capita calculates the contribution that each individual provides towards the GDP , which can be used as a reference to the different social classes established in the country, and theref ore decisions could be made concerning a specific social class. In the end, a combination of GDP , GDI , GDO , and other alternatives would seem to be the best course of action since each alternative could be used separately for different purposes, like impor ts and exports, market values, or investments. But the main issue at hand is time. The time in calculating each economic analysis or a time where only one of the many alternatives can be relied on. For this reason, economists and scientists should keep sea rching for a “true GDP .” This by itself should be a social responsibility since its finding would be used during any scenario and still be accurate. Nevertheless, I believe that a “true GDP ” might not be as efficient to calculate as GDP or GDI , but its abu ndance of aid under a state in which GDP or GDI has not been calculated yet would be extraordinary. Page 3 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited References The Economist Newspaper. (2022, June 9). A focus on GDP understates the strength of America’s recovery . The Economist. Retrieved June 26, 2022, f rom https://www.economist.com/finance -and -economics/2022/06/09/a -focus -on -gdp – understates -the -strength -of-americas -recover y Page 4 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited A focus on GDP understates the strength of America’s recovery A focus on GDP understates the strength of America’s recovery | The Econom ist Gross domestic income, a close cousin, paints a far rosier pi cture =t is fashionable in some circles to lament the “cult of gross domestic product”. The pursuit of growth, this criticism goes, blinds officials to less quantifiable but worthier objectives, be it a contented population or a clean environment. For ma ny economists, the concern about GDP is very different. They see huge value in the core mission of the measure: namely, to provide as timely and accurate a snapshot of the state of the economy as possible, a lodestar for governments setting policies and fo r companies making decisions. Their criticism instead is that GDP occasionally struggles to achieve this, and that better alternatives might exist. Page 5 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited This debate has again come to the fore in America because of an unprecedented gap between GDP and its close relative, gross domestic income ( GD= ). =n theory the two ought to be aligned. GDP tracks all expenditure in the economy, summing up the market value of consumption, investment, government spending and net exports in a specific period. GD= tracks the earnin gs associated with that expenditure, summing up wages, profits and any other income. =n reality the two never match up perfectly, since the long -suffering bean -counters in statistical agencies must draw on different sources, released at different times, to tot them up. The gap between GD= and GDP (officially known as “the statistical discrepancy”) is typically about 1%. Since late 2020, however, the discrepancy has been much larger. =n the first quarter of this year America’s GD= was fully 3.5% larger than its GDP . That is much more than a roundin g error. As Ben :arris and Neil Mehrotra of the Treasury Department wrote on May 26th, when the latest GD= data were released, it results in remarkably different pictures of the economy. =f GDP is the better reflection of reality, economic output is still about 2% below its pre -pandemic trend. =f GD= is accurate, the economy is 1.2% above trend, a far stronger recovery. One approach to reconciling GDP and GD= is just to split the difference. =n 2015 the Council of Economic Advisers in Barack Obama’s White :ouse laid out the case for doing so, calling the average the “gross domestic output” ( GDO ). The crucial point is that both GDP and GD= derive from entirely independent gauges of output. Combining them should, on average, reduce measurement errors. M r Obama’s advisers found that GDO was an excellent predictor of Page 6 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited later revisions to GDP . For instance, when GDO growth is half a percentage point faster than GDP growth, it is associated with a subsequent upward revision to GDP growth by roughly half a perc entage point. This observation is slowly creeping into mainstream thinking. The Bureau of Economic Analysis has started publishing the simple average of GDP and GD= , though few journalists or analysts bother to mention it in their reports. Accounting for t he huge discrepancy at present is somewhat trickier. A useful starting point is the observation that the GD= -GDP gap opened up at the height of the covid -19 pandemic as the government’s stimulus flowed into the economy. The sudden infusion of cash through transfers to households and loans to businesses appears to have messed up conventional measures of economic activity. Corporate profits have been uncharacteristically strong, explaining the vigour in GD= . =n principle that should have been mirrored in much more robust GDP readings, too. Matthew Klein, the author of “The Overshoot”, an economics newsletter (and who worked at The Economist a decade ago), reckons that an undercounting of business investment in GDP may be the most likely cause. Statisticians ha ve struggled to keep tabs on all the newfangled ways that companies spend money, from software to cloud computing. During the pandemic entire business models were upended to accommodate online shopping and remote working; it stands to reason that investmen t data may have failed to capture such spending. Page 7 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited Another possibility, running in the opposite direction, is that incomes have been overstated. Some people and even businesses may have mistakenly inflated their incomes, at least in a statistical sense. Dea n Baker of the Centre for Economic and Policy Research, a left – leaning think -tank, noted back in 2011 that there was a correlation between asset bubbles and GD= . When the stockmarket soars, as it did during much of 2020 and 2021, GD= tends to outstrip GDP . Capital gains are not supposed to count as income in GDP calculations, as they reflect the prices of existing assets rather than production of new ones. But the pattern suggests that people sometimes may misreport capital gains as ordinary income. Nerds to the rescue The uncertainty about whether to blame the discrepancy on undercounted business investment or overstated income does seem to argue in favour of the simple GD= -GDP average as a measure of economic output. That, however, is not entirely satisfa ctory. =n a paper in 2010, Heremy Nalewaik, then an economist with the Federal Reserve, showed that GD= was generally closer to the mark than GDP in registering fluctuations in the business cycle. =t did a better job of documenting the true extent of the d ownturn in 2007 -09. Moreover, its outperformance relative to GDP over the past two years is also more consistent with the run -up in inflation. Policymakers who had paid more attention to GD= may have become more concerned sooner about economic overheating. Page 8 Name: Eduardo Lopez Course: Principles of Macroeconomics Course Section: 2301 Article Title: A focus on GDP determines the strength of America’s recovery Arthur: The Economist Group Limited Frustratingly, initial GD= estimates come out a month after the first GDP figures. But researchers are on the case. =n a paper published in Hanuary by the Cleveland Fed, economists pulled together GDP , GD= and a basket of monthly indicators such as the u nemployment rate and average hours worked in manufacturing. The result, they hope, is something closer to “true GDP ” that can be updated on a monthly basis. Encouragingly, it performed well in documenting the recovery from the pandemic. =f it proves itself over time, it will be one more in a dizzying array of indicators to keep track of. But the message is clear: a focus on conventional GDP alone is unduly restrictive at best, and misleading at worst.