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Economic Analysis Paper Requirements The purpose of this paper is to evaluate if you are able to understand and apply the concepts learned in this course in a real world situation. STEP 1 The first thing you need to do in this paper is to find out a recent (within one year of the due date of this paper) macroeconomics article. Please use ONLY the following sources to find an article. Please ask college library to get free access to any of these websites. · Wall Street Journal · New York Times · CNN Money · Bloomberg · The Economist · International Monetary Fund Website · World Trade Organization Website · Federal Reserve Website · Department of Labor Website · World Health Organization Website · Any leading national news papers of any country Note: Do not select the blogs. Also, make sure it is a macroeconomics topic. If you are not sure please ask me in advance. As soon as you like an article, print that out or save as PDF on your computer as the online view might not be available later on. Some example of macroeconomics topics are: · Inflation or hyperinflation situation in a country · Gross Domestic Product and Economic Growth in a Country · International Trade Agreements between Countries · Foreign Direct Investment in an Economy · Health, Education Issues in an Economy · Unemployment Situation of an Economy · Central Bank of an Economy · Monetary policy · Fiscal Policy STEP 2 Start making a rough draft. The paper should be divided into five pages: · Page 1: Cover Page: Here you will have your name, professor’s name, class, and course and project name. · Page 2, Page 3 and Page 4: Only written content where you will explain the article in your own words with the help of the concepts, principles and models you learned in this course and analyze it. · Page 5: References (no more than two references excluding your textbook). · Page 6: Is optional where you can have graphs, tables, etc. Do not have graphs or tables on other pages. The number of pages including cover page, references, and the optional page should be minimum 5 pages and maximum 6 pages. Page numbers 2, 3 and 4 should be divided into five paragraphs (no less, no more). The word limit of your content should be approx.950 words. Below are the details and examples for these paragraphs: · First Paragraph: This would be giving a brief idea, topic, issue of the article you have chosen and three main points you would like to discuss in the following paragraphs. For example, your article is about unemployment of an economy and the article compares the natural rate of unemployment, structural unemployment, and frictional unemployment of that economy. · Second Paragraph: This would discuss one of the main points you mentioned in the first paragraph. Continuing our example from the first paragraph, it would be the natural rate of unemployment of that economy that the article has discussed about. · Third Paragraph: This would discuss second of the main point you mentioned in the first paragraph. Continuing our example from the first paragraph, it would be structural unemployment of that economy that the article has discussed about. · Fourth Paragraph: This would discuss one of the main points you mentioned in the first paragraph. Continuing our example from the first paragraph, it would be frictional unemployment. of that economy that the article has discussed about. · Fifth Paragraph: Conclusion Note: Please do not use my example for your paper. Just because I have used unemployment topic in my example does not mean that you need to do your paper on unemployment. It can be on any macroeconomics topic you have learned in this course. The more unique your work is the better it is. Also please do not provide your opinion. Just explain what the author has written in their article in your own words and using the terms, concepts, models and principles learned in this course. Always stick with the article issue and topic throughout your paper. Important things your paper MUST include: · You should apply a minimum of ten concepts you learned throughout this course. These concepts can be found at the end of each chapter in your textbook and/or the key concepts list I have posted on the Blackboard in each chapter in the respective modules. · One economics principle learned in this course. The list of the ten principles your learned can be found in chapter 1 of your textbook. You can also refer to the chapter 1 power point. · There must be some data analysis. If there is no data in your article, you can create a hypothetical example that has numbers in it. · Write in your own words. Limit your quotes to a very minimal one. Check the similarity report upon submitting. If it is high (higher than 30%) then rewrite the portion that is similar and resubmit. You can submit as many times as you want until the due date. · Please DO NOT use more than two references. STEP 3 Recommendable: If you need help with the writing, contact the writing center. They can help you by providing some suggestions. STEP 4 How to Submit? It must be submitted online. It should be neatly typed, double spaced, and with a font size 12. It can be either word or PDF, not any other file as it is not necessarily compatible with the Blackboard. Macroeconomics SSE 104-1726 Prof. Neetu Kaushik Economic analysis paper of US-China trade war Shufen Mei Nov. 28, 2018 neetukaushik Highlight Trade can make everyone better off because trade allows people to enjoy a greater variety of goods and services at lower cost. The article “Trump Hits China With Tariffs on $200 Billion in Goods, Escalating Trade War” is an economy analysis published by The New York Times on September 17, 2018, which introduced the reason and process of the trade war between China and the US, and analyzed the impact of trade war on the US economy, commodity prices and unemployment. In the article, the author pointed out that the US imposed tariffs on Chinese goods are aimed at hurting China. However, a trade war is a double-edged sword, especially in today’s economic globalization. The trade war will inevitably have a huge impact on the overall market economy of China and the US. Therefore, in the following article, I would like to discuss the inflation, changes in the US domestic demand and supply, and changes in the unemployment rate under the influence of the US-China trade war. In theory, when a country’s exchange rate remains stable, raising the tariff rate will lead to an increase in the price of imported goods, which will eventually lead to an increase in inflation. The article mentioned that the US claimed it would impose an additional tariff of 25% on 200 billion Chinese products. In fact, a further increase in US tariffs on Chinese products would be tantamount to taxing consumers because tariffs increase the price of imported goods and increase the cost of living for the American people. Suppose that the US imports a good A from China, and the price of good A is $10. when the US imposed tariffs on imported goods from China, the price of good A in the US will rise immediately from $10 to $13. And also, if good A is an intermediate input commodity, it will be transmitted to other commodities, then the US faces inflation. Moreover, when the price level rises, each unit of currency buys fewer goods and services; consequently, price inflation decreases household purchasing power. As the article says “the tariffs are aimed at hurting China, but they could hamper the American economy and bring pain for consumers.” Even if consumers do not have to buy imported goods at a high price, they must purchase similar domestic products at a higher price. Apart from that, adding tariffs may decrease the domestic demand for imported goods. As the article stated “the tariffs will affect a significant swath of industries, driving up prices for materials and goods,” usually, rising prices of raw materials and commodities will lead to an increase in business costs and selling prices. According to the law of demand, when other things being equal, as the price of a good increase, quantity demanded decreases. For example, before the tariff is imposed, the price of good A is $100 (point P1), the quantity demand is 300,000 (point Q1). After the tariffs are imposed, the price of good A increases from $100 to $125 ( point P2), the quantity demanded decreases from 300,000 to 230,000 (point Q2)(as graph shows). The US domestic demand for good A has declined due to rising price. In addition, increasing in tariffs will increase the domestic supply of traded goods. In theory, if other conditions remain unchanged, the rise in the price of imported goods will lead to an increase in the price of similar domestic products and bring more profits to the relevant manufacturers. According to the law of supply, when other things equal, an increase in price results in an increase in quantity supplied. For example, before the tariff is imposed, the price and quantity supply of good A in the United States are at point P1($100) and point S1 (100,000) respectively. After the tariff is imposed, the price and quantity supplied of good A increase to point P2 ($125) and point S2 (150,000) respectively (as graph shows). When the price of goods goes up, the total domestic supply of taxable goods will increase. What’s more, if other conditions remain unchanged, further tariffs will cause the relevant industries to face huge operating pressures and loss of profits, resulting in an increase in unemployment. In the article, the author highlighted that “American businesses — which have warned that tariffs could hurt profits, force job cuts and, in some cases, destroy companies.” On the one hand, there are a lot of industries involved in the trade war. For these related industries, the increase in export or import costs will directly lead to slower export speeds or even stop exporting. Therefore, enterprises that making a living from these industries will face enormous operational pressures and bankruptcy. Industry bankruptcy means that many people will be unemployed. On the other hand, the decline in demand due to rising good prices and the decline in consumer purchasing power caused by inflation will