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current economic event or phenomenon

current economic event or phenomenon
1. (15 points) Use a current economic event or phenomenon, perhaps from one from your shared articles. Drawing on the things you have read, please do the following:
? Tell what is happening.
? Share some facts gathered to illustrate what is happening.
? Explain any proposed causes that have been put forward.
? Explain some of the effects of what is happening.
? In any of the above, you may want to explain any opposing positions or predictions offered by others.
? You may offer your own opinions or predictions if you want.
2. (10 points) In 2007 and 2008 the Federal Reserve Open Market Committee voted to lower interest rates repeatedly. Please explain:
a) Why the Fed would do this
b) How the Fed does this
c) Possible consequences on the economy of the Fed’s actions.
3. (5 points) Please describe the two main indicators of a recession and explain how they relate to one another.
4. (10 points) Describe what happens when government restricts a price so that it cannot reach equilibrium. This might be a price ceiling or a price floor. Be specific in relating this to the supply and demand curves. You may use hypothetical example (i.e. the price of milk, tractors, etc.) if that will help in your explanation.
5. (10 points) Microsoft has had ongoing legal issues for many years with the U.S. and
the E.U. (European Union). There have been many lawsuits, battles with the Justice
Department or other agencies, and agreements restricting certain behaviors. Why would
these governments take such an interest in one company?

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