Instructions:

This is a multi-part Writing Assignment. You must complete all three Parts. There is no minimum word requirement. However, you are expected to provide a thorough explanation and analysis. Required graphs must be DRAWN by you, scan or take photo of the graph, save as a PDF, and submit as part of your paper.

Every Writing Assignment expects you to use “positive economic analysis”, as defined in Chapter 1 of the textbook. In other words, please do not express your opinion. Use economic analysis to answer the questions.

Your goal is to convince me that you know and understand the economic tools that you use to answer the questions.

PART 1:

The city of Wilmington, Delaware, hometown of the current President and your instructor, is a very poor city. The mayor of Wilmington has decided to impose a law to cut all rental rates on apartments in half and to fix them by law at this level.

A. Will this help the poor? Why or why not? Be sure to distinguish between the short run and the long run. Draw a GRAPH to support your argument. (Ch. 4-2)

B. If rent controls in general harm the poor and their city, why do elected officials constantly favor rent controls? (Ch. 6-5)

Part 2:

Answer the following questions:
A. What does GDP measure, and why is it a useful tool for economists, business decision makers, and government policy makers? (Ch. 7)
B. Explain at least two important things GDP does not measure. (Ch. 7)

Part 3:

Answer the following questions:
A. What are the three types of unemployment, and which two compose the natural rate?
B. Give an example of a person who would be counted in each type.
C. Would an economy with 2 percent actual unemployment be in a recession? Why or why not? (Ch. 8-3)

RULES:

Submissions must be in Microsoft Word or PDF format.
Draw graphs, scan or take photo, save as a PDF, and submit as part of your paper.
Late submissions will not be accepted.
All work must be your own. Do not collaborate with classmates; do not copy and paste from the internet or any other source.
You can use any course material to complete the Assignment (open book, notes, PowerPoints).
DO NOT USE OUT-OF-CLASS research or reference materials.
Use “positive” economic analysis, as defined in chapter 1.
Again, your objective should be to convince me that you know the topic.