ECO203

DQ1

Read the journal article, "Five Big Steps toward Faster Global Growth". Based on the information presented in the article, discuss the following:

• What are the challenges that the US economy will be faced with given a higher debt limit for future economic growth?
• Describe what would happen to GDP, the unemployment rate and the inflation rate if there is a decline in global growth.

Reference: Malpass, D. (2014, January 22). Five big steps toward faster global growth. Forbes. Retrieved from http://www.forbes.com/sites/currentevents/2014/01/22/five-big-steps-toward-faster-global-growth/

DQ2

Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment.  Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.