Macroeconomics

Macroeconomics

Purpose of Assignment

This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions.

Assignment Steps

Select two subjects from the following list of topics and write a 1,050-word analysis:

Active monetary and fiscal policy
Increased government spending to fight recessions
Reducing federal government’s discretionary powers
Zero-inflation target
Balanced government budget
Tax incentives for saving
Evaluate both the advocates’ position and the critics’ position.

Determine which position you support and defend your position.

Cite a minimum of three peer-reviewed sources not including your textbook.

Format consistent with APA guidelines.

Solution Preview

During recessions, governments tend to take the strategy of spending which means the fiscal policy is aimed at fighting inflation as well as economic downtime of a country. The fiscal policy should only be applied when the country is in a deep recession. People tend to spend less and save more in times of recession for fear of loss of employment and inflation that come with recessions.

(1,116 words)