ECO 372 Week 2 Principles of Economics and the Data of Macroeconomics

Explain the following information in your 1000 word report to members of the strategic planning committee for your company:

• 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

Format consistent with APA guidelines.

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SupportingMaterial:Grading GuidePrinciples of Macreconomics, Ch. 1: Ten Principles of EconomicsPrinciples of Macreconomics, Ch. 2: Thinking like an EconomistPrinciples of Macreconomics, Ch. 7: Consumers, Producers, and the Efficiency of MarketsPrinciples of Macreconomics, Ch. 6: Supply, Demand, and Government Policies Principles of Macreconomics, Ch. 5: Elasticity and Its ApplicationPrinciples of Macreconomics, Ch. 4: The Market Forces of Supply and DemandPrinciples of Macreconomics, Ch. 3: Interdependence and the Gains from Trade