Macroeconomics

9 - Case Study – Fiscal Policy and Presidential Elections

Suppose that fiscal policy changes output faster than it changes the price level. How might such timing play a role in the theory of political business cycles?

Please respond with a minimum of 250 words.

Often during recessions, the number of young people who volunteer for military service increases.  Could this rise be considered a type of automatic stabilizer?  Explain, why or why not?

10 - Is it possible for U.S. federal budget deficits to crowd out investment spending in other countries? How could German or British investment be hurt by large U.S. budget deficits?

Why are the Social Security and Medicare program headed for trouble? When will the trouble begin? What solutions have been proposed?

11 - Chapter 14

In countries where the monetary system has broken down, what are some alternatives to which people have resorted to carry out exchanges?

Do you feel that paper money will be eliminated all together in the future? Why or why not? Support your opinion with facts and text concepts.