Reference no: EM131439937
Assignment
If you choose to answer question 1 of essay assignment 2, some of you may be tempted to throw in a lot of theories from our textbook about how the government can reduce the severity of recessions. Say, the Fed can cut the interest rate, or the government can increase G and cut taxes, etc. Then you may throw in some AD AS diagram. PLEASE DO NOT DO SO. You do not need to put in what we have learned from the textbook. Instead, try to conduct more research to explain the causes of recessions and some other ideas not discussed in the textbooks about what the government can or cannot do about recessions.
I hope I make my points clear, let me know if you have any questions.
Essay Assignment
Instructions:
1. Write an essay on EITHER Question 1 or Question 2.
2. If possible, try to illustrate your answers with graphs, tables and numbers, which can help effectively explain your thoughts.
3. If you need to cite some ideas from other people, do give the sources. Plagiarism will result in failing the class.
4. Submit your work on Canvas by 11:59pm, March 19, 2017. Late essay will never be accepted.
Q.1
Refer to the following article about the ability of governments to avoid recessions:
https://www.wisebread.com/can-the-government-help-in-a-recession
Write an essay to address the following topics:
- Do you believe that governments can do something to preempt recession? If yes, why does the world experience recessions from time to time?
- Or do you think that indeed governments have done a great job, if without government actions, the global economy will fluctuate more?
- Give an example outside the US and China to explain the ability or inability of a government to avoid recessions.
Q.2
Refer to the following articles about national debt and federal budget deficit
https://www.worldatlas.com/articles/countries-with-the-top-budget-surplus.html
https://www.nytimes.com/2017/01/24/us/politics/budget-deficit-trump.html
https://www.forbes.com/sites/stancollender/2015/06/03/youre-wrong-if-you-want-to-reduce-the-national-debt/#29bbe5262f6e
Write an essay to address the following topics:
- Do you agree with the following idea? "Should Americans be concerned about budget deficit at all? It is unlikely that US government will default on debt, and government can borrow money from international lenders and American public to finance the deficit. The government should spend the money to boost the economy rather than reducing deficit."
- Give an example country not the US to explain the importance of proper budget management on economic development. You can also talk about a country which runs a huge deficit but still manages to prosper.
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