Applying Economic Theory
Objective: The purpose of this assignment is to (1) encourage you to see economics at the macro level, and (2) sharpen your analytical skills in applying economic theory to real-world events.Task: Find the annual inflation, unemployment, and economic growth statistics for the country of Brazil.Regional averages for inflation, unemployment and growth are xx, xx, xx. By using the Liquidity Preference Framework and the Aggregate Demand- Aggregate Supply analysis;• Suggest a monetary policy and/or a fiscal policy change for Brazil. • Show the effects of your proposed change(s) on major macroeconomic variables.There is not one correct answer, but you need to be able to justify your chosen policies in an understandable manner, with the use of economic theory.
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