The topics selected may or may not relate to that week’s reading but will be related to economics.

This is to gauge your general understanding of the current economic events that take place every day in our lives. It is to force you to think out of the box; broaden your horizon and to do some research besides reviewing your textbook. 

Instructions:

Write 1-2 pages on the given topic.

You can include addendums but that will not be considered as a part of the report.

Please use 12 font size.

Topic:  

The U.S. economy is about to get an injection of rocket fuel.

Many economists have argued that “this is as good as it gets” for U.S. economic growth. But President Trump’s $1.5 trillion Tax Cuts and Jobs Act could kick economic growth into high gear and give a further boost to the long, strong stock market rally.

Now in the ninth year of an underwhelming recovery, the economy was long held back by an overhang of debt and speed bumps from China to the oil patch. It’s finally hit its stride and seems set to step up its pace in 2018.

“We’ve got a global synchronized boom with low inflation,” said strategist Ed Yardeni, president of Yardeni Research. He called it an ideal “Goldilocks scenario” for investors, with the economy neither too hot or too cold.

If it continues until June 2019, the U.S. economic expansion will break the record 120-month run of the 1991-2001 expansion.

Review the news clip given above then answer the following questions:

If you are an investor, do you think this is the right time for you to invest say hypothetically, $100,000? If yes, why and if no why not?

What will be the impact of this act on employment in the coming years?

As a student of economics, give 5 steps as a “suggestion plan” to sustain economic growth. 

     A   psychologist believes that at least 80 percent of male drivers, when lost,   continue to drive hoping to find the location they seek rather than ask for   directions.  To test this belief, she took a random sample of 400   male drivers and asked each what they did when lost.  Of these   drivers, 309 indicated that they do not ask for directions when   lost.  At the 1 percent significance level, develop a hypothesis   test to determine if the psychologists claim can be substantiated based on   this evidence.