Reference no: EM131287944
The influence of monetary and fiscal policy
One of my favorite quotes is:
Hain't we got all the fools in town on our side? And ain't that a big enough majority in any town?
Mark Twain
Now, imagine your team is the reelection campaign committee for Pat Shoo-In, who is your local representative in the U.S. House of Representatives. Your team needs to prepare Pat for an upcoming debate by creating a 15- to 20-slide Microsoft® PowerPoint® presentation that Pat can review before the debate. Your presentation should include an introductory slide as well as a slide with your conclusions. Use the bolded words/phrases shown below as titles for your slides.
Your presentation should:
• Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run. Provide real-world examples of those "key facts."
• Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause expansions and recessions using the model of aggregate demand and aggregate supply. Discuss whether the U.S. economy is currently in the expansion phase of the business cycle or in a recession and support your discussion with economic statistics.
• Explain how monetary policy affects interest rates and aggregate demand as well as how fiscal policy affects interest rates and aggregate demand. Explain the term accommodative as it applies to fiscal and monetary policy.
• Evaluate why policymakers face a short-run trade-off between inflation and unemployment and why the inflation-unemployment trade-off disappears in the long run. Support your contentions with statistics on inflation and unemployment from the Bureau of Labor Statistics.
Cite a minimum of three peer-reviewed sources not including our textbook (Mankiw). Appropriate sources could include the National Bureau of Economic Research (information on economic fluctuations), the Federal Reserve (information on monetary policy), the Congressional Budget Office (information on fiscal policy), and the Council of Economic Advisors (information on fiscal policy).
Lastly, you need to format your report consistent with APA guidelines and click the Assignment Files tab to submit your report.
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