This Competency Assessment assesses the following outcome(s):
MT445M4-4: Examine how U.S. macroeconomic indicators are used to gauge economic health.
PC-1.2: Contribute to team goals and objectives through active participation and collaboration.
In this Assessment, you will examine factors that affect aggregate demand (AD) and aggregate supply (AS). You will compute the rates of inflation using the U.S. consumer price index (CPI) and then examine how the results impact nominal interest rates, inflation, disinflation, and deflation.
There are two parts to this Assessment. This Assessment presents scenarios in which you are required to answer in a combination of short paragraph answers, computations, and completion of a 450–500 word expository research essay.
Directions
Using the Word® template provided, answer the following questions based on the situation.
Part 1: AD, AS, Unemployment, and Inflation
Section 1: Changes in the AD and the AS
Determine whether each of the following would cause a shift of the aggregate demand (AD) curve, a shift of the aggregate supply (AS) curve, neither, or both. Which curve will shift, and in which direction? What will happen to aggregate output and the price level in each case?
The price level changes.
i.  Which curve will shift?
ii.  Which direction does it shift?
iii. What will happen to aggregate output?
iv. What will happen to the price level?
* Consumer confidence declines.
i. Which curve will shift?
ii. Which direction does it shift?
iii. What will happen to aggregate output?
iv. What will happen to the price level?
*  The supply of resources increases.
i. Which curve will shift?
ii. Which direction does it shift?
iii. What happens to aggregate output?
iv. What happens to the price level?
* The wage rate increases.
i. Which curve will shift?
ii. Which direction does it shift?
iii. What will happen to aggregate output?
iv. What will happen to the price level?
Section 2: Employment and Unemployment
Explain whether the following statements are true or false.
i. Some people who are officially unemployed are not in the labor force.
ii. Some people in the labor force are not working.
iii. Everyone who is not unemployed is in the labor force.
iv. Some people who are not working are not unemployed.
Section 3: Consumer Price Index (CPI) and Inflation
Refer to the following data on the U.S. consumer price index and answer the questions below.
Year              CPI                Year  CPI                Year  CPI                Year  CPI
1988          118.3              1993  144.5          1998  163.0      2003 184.0
1989          124.0            1994  148.2          1999  166.6      2004  188.9
1990          130.7            1995  152.4          2000  172.2    2005  195.3
1991          136.2              1996  156.9          2001  177.1    2006  201.8
1992          140.3              1997  160.5          2002  179.9
*  Compute the inflation rate for each year 1988–1989, 1989–1990, 1990–1991, 1991–1992 etc. using the CPI data for 1988–2006 in the table above. Show your work.
*  Which years were years of inflation? What do you expect to happen to real interest rates during this time period if nominal rates remain unchanged?
*  In which years did deflation occur? What do you expect to happen to real interest rates during this time period if nominal rates remain unchanged?
*  In which years did disinflation occur?
Section 4: Anticipated and Unanticipated Inflation
Answer the following questions in a 450–500 word essay.
Explain the difference between anticipated and unanticipated inflation? What are the costs associated with unanticipated inflation? Why do these inflation costs differ from those associated with anticipated inflation?
Part 2: Team Goals and Objective
In the globalized workforce of today, teamwork has become a norm for companies. Therefore, you may encounter the challenge of working as part of culturally and demographically diverse team. Cultural values differ; some cultures are collectivist and some cultures are individualistic. Some are more rigid with regard to gender roles and others are less so. Some are more secular, and others are more sacred.
Assume you are assigned by your company to build a successful cross-national team that evaluates the effects of anticipated and unanticipated inflation on your company through its impact on the cost of production of the company, as well as through its impacts of inflationary pressure on the customer base of the company. Based on this information, respond to the following questions.
How do you build the diverse workers into an inclusive workforce that can effectively execute the project? How do you create goal-oriented team synergy among your diverse team members to foster active participation and collaboration? As a team leader, how do you account for differences in characteristics when leading multinational teams?
Minimum Submission Requirements
*Proper notification of any Resubmission, Repurposing, or *Reworking of prior work per the Purdue Global Student *Coursework Resubmission, Repurposing, and Reworking Policy Resource.
*This Assessment should be a Microsoft Word document. Use this template for your Assessment.
*Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your paper should be highly organized, logical, and focused.
*Your paper must be written in Standard English and demonstrate exceptional content, organization, style, and grammar and mechanics.
*Your paper should provide a clearly established and sustained viewpoint and purpose.
*Your writing should be well ordered, logical and unified, as well as original and insightful.
*A separate page at the end of your research paper should contain a list of references, in APA format. Use your textbook, the Library, and the internet for research.
*Be sure to cite both in-text and reference list citations were appropriate and reference all sources. Your sources and content should follow proper APA citation style. Review the APA formatting and citation style resources found in the Writing Center. The Writing Center can be found in the Academic Success Center in the Academic Tools area of your course. (It should include a title page, paper is double-spaced, in Times New Roman 12-point font, correct citations, Standard English with no spelling or punctuation errors, and correct references on the last page.)
If work submitted for this competency assessment does not meet the minimum submission requirements, it will be returned without being scored.
Plagiarism
Plagiarism is an act of academic dishonesty. It violates the University Honor Code, and the offense is subject to disciplinary action. You are expected to be the sole author of your work. Use of another person’s work or ideas must be accompanied by specific citations and references. Whether the action is intentional or not, it still constitutes plagiarism.