Part 1: Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year.
- Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same.
- What is the first action you would take as the president? As the chairman of the Fed? Why?
- What would be your subsequent steps?
- Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs.
Include the following concepts in your discussion:
- Demand and supply of money
- Interest rates
- The Phillips curve
- Taxation
- Government spending
- Wages
- Costs of inflation
- The multiplier and the tax multiplier
- The idea of tax rebates to stimulate the economy
Part 2: Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?
Order Management
15%
get 15% discount on your first order
code:first15
Premium Service
- 100% Custom papers
- Any delivery date
- 100% Confidentiality
- 24/7 Customer support
- The finest writers & editors
- No hidden charges
- No resale promise
Format and Features
- Approx. 275 words / page
- All paper formats (APA, MLA, Harvard, Chicago/Turabian)
- Font: 12 point Arial/Times New Roman
- Double and single spacing
- FREE bibliography page
- FREE title page
0% Plagiarism
We take all due measures in order to avoid plagiarisms in papers. We have strict fines policy towards those writers who use plagiarisms and members of QAD make sure that papers are original.