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ECO 102 Week 8 Assignment 2 Fiscal Policy in the United States Recent

ECO 102 Week 8 Assignment 2 Fiscal Policy in the United States Recent
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ECO 102 Week 8 Assignment 2 Fiscal Policy in the United States NEW

Assignment 2: Fiscal Policy in the United States

Due Week 8 and worth 200 points

 

In late 2008, the United Stated entered a severe recession – by some measures, the most severe recession since the 1930s. In response to the recession, Congress passed and the Obama Administration signed into law the American Recovery and Reinvestment Act of 2009. The act’s total cost was $787 billion dollars – $500 billion dollars in increased government spending and $287 billion dollars in decreased taxes.

 

Write a three to four (3-4) page paper in which you:

  1. Discuss the expected impact the increased levels of government spending would have on output / GDP, unemployment and inflation in both the short and long run, using the model of aggregate supply, and aggregate demand.
  2. Compare the impact on GDP, output, and inflation caused by increased spending versus decreased taxes in the American Recovery and Reinvestment Act of 2009.      
  3. Discuss at least two (2) issues and risks to the economy of the increased budget deficit associated with the increased levels of government spending and decreased taxation contained in the act.
  4. Include three (3) external peer-reviewed sources to support your position.

 

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

 

The specific course learning outcomes associated with this assignment are:

  • Explain the components of aggregate expenditure as elements in developing a theory of aggregate demand.
  • Evaluate the relationships between the concepts and models related to aggregate supply and demand, explaining their ability to function in the short term and the long term..
  • Use technology and information resources to research issues in macroeconomics.

Write clearly and concisely about macroeconomics using proper writing mechanics

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