Question;module 3;case study;Macro-economic;choices, particularly in the areas of fiscal policy, are not just about;economics but about political philosophies, values and goals. This Case asks;you to think about some of these dimensions.;1. Do all;government purchases have the same effect on aggregate demand? Defend your answer;with economic reasoning.;2.;Suppose a country increases government purchases by $100 billion. Suppose the;multiplier is 1.5 and the economy?s real GDP is $5,000 billion.;a. In;which direction will the aggregate demand curve shift and by how much?;b. Why is;the change in real GDP is likely to be smaller than the shift in the aggregate;demand curve?;3. Read;the Case in Point: Crowding Out in Canada in Section 12.3 (click here) and answer the following;a. What;is ?crowding out,? and how does it reduce private investment?;b. Given;that only certain types of government expenditures crowded out private;investment, what are the implications for fiscal policy choices?;Case;assignment expectations;Use;information from the modular background readings as well as any good quality;resource you can find. Make sure you cite all resources you use and provide a;reference list at the end of your paper.;LENGTH: 4;typed and double-spaced pages.;In;addition to the overall quality, depth, grammar, and organization of the paper;the following will, in particular, be assessed;1.;Analytical skills that allow you to draw conclusions, questions 3,4 and 5 on;federal budget projections.;2.;Critical thinking skills, question 5, on formulating policy about budgetary;matters.;module 4;case study;Money;supply and interest rates are important to individuals and businesses making;decisions to finance purchases. The following articles assess conditions for;financing purchases and important aspects of monetary policy. Read both and;respond to the four questions in a 4 to 5 page report.;1. The;Federal Reserve policy makers use several different tools to influence the;money supply and interest rates. Identify and briefly describe these tools.;Include in your answer the difference between expansionary and contractionary;monetary policies.;2. Define;and explain the three lags discussed in monetary policy. For each type identify;a problem caused by the lag.;3. If the;economy is operating below its potential output, what kind of gap exists? What;kinds of fiscal or monetary policies might you use to close this gap? Can you;think of any objection to the use of such policies? (using information from;module 3 as well).;Case;assignment expectations;Use;information from the modular background readings as well as any good quality;resource you can find. Make sure you cite all resources you use and provide a;reference list at the end of your paper.;LENGTH;4-5 typed and double-spaced pages.;In;addition to the overall quality, depth, grammar, and organization of the paper;the following will, in particular, be assessed;1. The;level understanding of the link between Federal Reserve actions and its affect;on interest rates and monetary policy;2. Your;ability to understand the link between current and prospective economic;conditions and making decisions about major long-term financial commitments.;module;5case;study;The Two;Branches of Macro-Economic Theory;Thinking;like a Mac ro-Economist;John;Maynard Keynes and Milton Friedman;Macro-economics;is perhaps the most divisive area of economics when applied to political;decision making, and macro-economists divide themselves into different schools;of thought. Two of the biggest camps are the Keynesians and the Monetarists.;Keynesians and post-Keynesians follow the theories of John Maynard Keynes, the;most-celebrated economist of the 20th century who proposed that;government stabilize the economy with the use of fiscal policy. Monetarists, on;the other hand, follow the teachings of Friedrich Hayek. For this assignment do;some research on the ideas of Keynes and Hayek. Focus on the "big;picture" of what their main ideas are and how they have influenced policy;makers. Then write a 4 to 5 page paper addressing the following questions;1. a.;Discuss the policies that Keynes and Hayek advocated regarding how the federal;government should manage the economy. What are the major differences between;each school of thought.;b. Based;on your answer to question #1a, which of the two economists would you agree;with more? Explain.;2. Read;Case in Point 3: Steering on a Difficult Course in section 17.3 of the online;text (link here).;a. Why;did people believe the difficulties Asian economies were experiencing in;1997?1998 might bring a recessionary gap to the United States?;b. In;dealing with the recession of 2008 why is it important for the Fed and Congress;to coordinate monetary and fiscal policy measures?;3.;Compare the rationale of the Reagan administration for the 1981 tax reductions;with the rationale behind the Kennedy?Johnson tax cut of 1964, the Bush tax cut;of 2001, and the Bush tax cut of 2003.;Case;Assignment Expectations;LENGTH;4-5 typed and double-spaced pages.;In;addition to the overall quality, depth, grammar, and organization of the paper;the following will, in particular, be assessed;1. Use;information from the modular background readings as well as any good quality;resource you can find. Make sure you cite all resources you use and provide a;reference list at the end of your paper.;2. Your;ability to apply the concepts and knowledge learned in this course to formulate;your own ideas about resolving economic difficulties.
Paper#55593 | Written in 18-Jul-2015Price : $82