Overview
Week 1 Recently, there has been public debate about whether GDP alone gives a complete picture of a nation’s economic well-being. Concerns have been raised about GDP’s ability to reflect issues like environmental health, income inequality, and access to basic services like health care.
Consider whether other metrics should be added to provide a more accurate view of a nation’s well-being.
Respond to the following:
- How well does GDP reflect a country’s overall economic health? What key factors, like environmental quality or income gaps, might it miss? Why are these factors important for understanding progress?
- If you were to create a complementary measure to GDP, what factors would you include to give a clearer picture of well-being? For example, if you think environmental quality adds value that is not tracked, how would you measure it to show how it adds to the country’s health and growth economically?
- How might AI help gather and analyze this data?
- While GDP growth is often seen as a sign of progress, how does it impact the daily lives of ordinary people? How can you explain that GDP grows, but many citizens still face financial struggles? What policies could address these issues?
week 2 Unemployment affects individuals, families, and communities in different ways. Unemployed adults and their families are vulnerable to not meeting their basic needs, experiencing mental health challenges due to job loss, and feeling ripples through their communities, too.
Respond to the following:
- Long-term unemployment is considered 27 or more weeks while actively seeking employment. What are the biggest challenges faced by someone who has been unemployed long-term?
- How do social programs, such as job training, access to health care, housing support, and unemployment benefits, influence the community, the local economy, and the U.S. economy?
- What considerations should be included for these programs to offset potential negative effects of these programs on communities, the economy, and the individuals directly affected?
week 3 Monetary policy has a critical role in the economy, shaping things like inflation, interest rates, and overall growth. Central banks often face the difficult task of balancing the need to control inflation with the goal of promoting employment, as these objectives can sometimes conflict. Rising inflation, for example, erodes the purchasing power of money, creating challenges for households, businesses, and the broader economy. Older adults on fixed incomes may struggle to maintain their standard of living, while entrepreneurs may find it harder to expand their businesses due to rising costs and uncertainty. These situations show just how connected monetary policy decisions are to the everyday lives of different groups and the economy.
Respond to the following:
- How should central banks balance the goals of controlling inflation and promoting employment? How do you think that happens effectively nationally and internationally?
- What challenges might arise when trying to achieve both low inflation and full employment at the same time?
- When the purchasing power decreases, it affects everything from the global economy to individual households. What is an example of how 2 different groups (other than the older adults and entrepreneurs already mentioned) are affected by monetary policy and attempts to control inflation and increase employment? What can those groups do to adjust or adapt to changes in purchasing power
week 4 Raising the standard of living is a goal for governments and businesses, but it often involves balancing competing priorities, like health care, education, and environmental sustainability.
Respond to the following:
- How should governments and businesses prioritize these factors to improve the standard of living, while also addressing challenges like inflation and unemployment?
- When wealthy nations invest in or trade with less-wealthy nations, who do you think benefits more: nations with larger populations or nations with smaller populations? Why?
- What are the risks and tradeoffs for both sides when trying to balance employment levels and inflation?
Week 5 Businesses are vulnerable to both the actions of government and changes in the economy. Due to that, they must be ready to react.
Government fiscal policies, like tax cuts or increased spending, are meant to stimulate the economy, but they sometimes have unintended effects on businesses, such as reductions in government services or changes in regulatory policy. During recessions, businesses face difficult decisions, such as whether to reduce staff, cut costs, or hold off on expansion.
Respond to the following:
- What are examples of times when fiscal policy helped or hurt certain industries?
- How should businesses prepare for these unexpected outcomes?
- What factors do you think managers should consider most when making decisions during a recession, and how might their approach differ in times of economic growth?