• April 21st, 2016

AP WK 3 – 3.5 Macroeconomics Questions

Paper, Order, or Assignment Requirements

Why do you think auto sales generally peak well before a recession and then recover near the end of a recession? How might auto sales relate to monetary policy and interest rates?

Explain why the results of Consumer Confidence and Consumer Expectations surveys are leading indicators.

From a Keynesian perspective, what role do corporate profits (or expectations about corporate profits) play in business investment decisions and the business cycle?

Explain why you agree or disagree with the following statement: “A downturn in Consumer Confidence does not cause a recession. Other factors present at the earliest stage of the recession are what cause Consumer Confidence to decline.” Does this sound like a Keynesian, Monetarist, and/or Neo-classical point of view?

What is the “Beige Book”?

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