Explain the strengths and weaknesses of fiscal policy

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Reference no: EM132588463

Assignment: Prepare a 400 - 500 word exploration (roughly 1-2 pages) about economic policy.

Given that an economy is experiencing inflation in the 5-6% range and the Federal debt is at an all-time high, design an economic policy (that uses one or both of fiscal and/or monetary policy) to reduce the rate of inflation.

Make sure your exploration addresses the following:

1. Define what fiscal policy is

2. Explain the strengths and weaknesses of fiscal policy

3. Define what monetary policy is

4. Explain the strengths and weaknesses of monetary policy

5. Given that the actual policy choice is somewhat normative in nature, outline the policy you would choose to use and justify the policy based on the strengths and weaknesses of your options.

6. Describe which macroeconomic theory we reviewed you used as a basis to develop your policy.

Requirements: 1. Prepare a header, left justified with:

• Your name

• Class & Section # ie: Econ101-xx

• Date

2. Capstone title, centered

3. Format the paper by

• 12 point Ariel, Calibri, or New Times Roman fonts

• Line spacing must be 1.15 or 1.5

• Skip one line to begin a new paragraph

Must include at least one APA citation source (but based on the paper content, probably two citation can use one from a previous article you posted if it is applicable)

Reference no: EM132588463

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