ECO 203

Between 2007 and 2009 the U.S. economy experienced a severe recession.   In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal government’s use of fiscal policy (the stimulus) to promote growth and employment.  Support your ideas with concepts found in the assigned reading. Include the following in your response:

• Discuss some actions taken by the federal government and whether the recession would have been longer and the unemployment rate higher if the government had not acted by passing the stimulus package? 
• If left alone, do you believe the economy would have corrected itself as suggested by Classical economic theory?  Explain.
• Discuss the effect these policies had on increasing the size of the budget deficits and the national debt.

Reference:  Chapter 9, section 9.4: More Recent Tax Changes, and Chapter 10, section 10.2: Early 1990s and 2000s Recessions.

Guided Response:   Review the discussion board posts of your classmates.  Respond to at least two of your classmates by agreeing or disagreeing with their posts. Support your ideas with concepts found in the assigned reading

Discussion 2

Between 2007 and 2011 the federal budget deficit grew from $160.7 billion to $1,299.6 billion, and the national debt grew from $8.9 trillion to $14.8 trillion. (Figure 10.1: The ratio of debt to GDP, 1977-2011.) 

In your post, differentiate the budget deficit from the national debt.  How do you think the increases in the budget deficits and the national debt will affect the economy in the future?

Reference: Chapter 10, section 10.1: Debt and Deficits, and section 10.4: Do Deficits Matter?

Guided Response: Review the discussion board posts of your classmates.  Respond to at least two of your classmates with questions that allow them to extend their thinking.  Support your ideas with concepts found in the assigned reading.

Assignment

Efforts to Reduce the Budget Deficit
 

The rapid growth of the national debt alarmed some politicians and created pressure for restricting Congress's unlimited ability to spend. After reviewing Chapter 10, Section 10.2: Efforts to Reduce the Deficit, discuss the actions taken by Congress since 1985 to reduce the budget deficits.

Use scholarly sources to support the current debate between the White House and Congress regarding what measures are necessary to address spending and revenues (e.g., news reports, official statements, press conferences, as well as numerous government websites).

Write a two- to three-page paper (not including title and reference pages), using at least three scholarly sources, including the textbook. The paper must be formatted according to APA style as outlined in your approved style guide.

Suggested references:

Ashford University Online Library (follow the Library link within the tool bar on the left).
Congressional Budget Office: www.cbo.gov.
Internal Revenue Service: www.irs.gov.
The Executive Office of the President: www.whitehouse.gov.

The Paper:

1. Must be two to three double-spaced pages in length and formatted according to APA style as outlined in your approved style guide.
2. Must include a title page with the following:
   1. Title of paper
   2. Student’s name
   3. Course name and number
   4. Instructor’s name
   5. Date submitted
3. Must include an introductory paragraph with a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must conclude with a restatement of the thesis and a conclusion paragraph.
6. Must use at least three scholarly sources, including the textbook.   One reference must come from the Ashford University Library.
7. Must use APA style as outlined in your approved style guide to document all sources.
8. Must include, on the final page, a reference List that is completed according to APA style as outlined in your approved style guide.

Quiz