Ten Principles of Economics and the Data of Macroeconomics

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Resources: National Bureau of Economic Research; Principles of
Macroeconomics
: Ch. 1, 2, 3, 4, 5, 6, and 7

Scenario: Your organization’s CEO is concerned that members of the
strategic planning committee are not familiar with current economic thought and
principles. The CEO has assigned you the task of developing a report to
introduce some of these thoughts and principles.

Develop a 1,050-word report to the members of the strategic
planning committee explaining the following information:

· 
How economists are both
scientists and policymakers and what principles society uses to allocate its
scarce resources.

· 
Using the circular flow
model, explain the flow of money and goods in an economy.

· 
How the economy
coordinates society’s independent economic actors.

· 
A country’s gross domestic
product (GDP) and how it is defined and calculated.

· 
How the consumer price
index (CPI) is constructed and why it is an imperfect measurement of the cost
of living.

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