Describe how a market economy functions and the relationships of its major subdivisions or aggregates, such as the government, households, and business sectors. Emphasis will be placed on the U.S. Economy and its linkages to the global economy (CO1)
Construct and interpret economic graphs (CO2)
Explain how macroeconomic issues relate to the government’s policy decisions (CO3)
Identify the tools of fiscal and monetary policies (CO4)
Analyze economic policies and predict their effects, especially regarding relating theory to real world situations (CO5)
Review what you have learned about business cycles, GDP, unemployment, CPI, monetary policy, and fiscal policy and respond to the following:
- How did GDP, unemployment, and the cost of living change during the last recession? Be sure to provide aggregate statistics from the appropriate government sources.
- How was fiscal and monetary policy used to reduce the recessionary gap? Be sure to provide specific examples.
- What were the expected benefits of the policies adopted? What were the potential costs of the policies adopted?
- What phase of the business cycle is our economy currently in? Be sure to use current aggregate statistics to support your answer.
The paper must be typewritten in Microsoft Word. It must be double-line spaced and should not be longer than three pages.
Compose your work in a .doc or .docx file type using a word processor (such as Microsoft Word, etc.) and save it frequently to your computer.
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