MACROECONOMICS: EBAY ASSIGNMENT (FISCAL POLICY: GOVERNMENT EXPENDITURES AND REVENUES, BUDGET, NATIONAL DEBT)

Module 3 - Home

Fiscal Policy: Government Expenditures and Revenues, Budget, National Debt

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

· Case

· Assess fiscal policy's potential impacts on the economy. Understand the major components of the federal budget regarding revenue and expenditures. Discuss the national debt and its consequences to the country. Make decisions about how to reduce the national budget deficit. Suggest ways to stimulate the economic recovery.

· SLP

· Analyze the effects of fiscal policy on the performance of your organization. Discuss changes you would like to see in fiscal or monetary policy that would be of help to your organization.

· Discussion

· Discuss U.S. tax policy and fiscal cliff.

Module Overview

The budget of the United States is made up of sources of revenue (you will be asked to identify and discuss the major sources), and expenditures (you will be asked to identify and discuss the major expenditures). When expenditures exceed revenues the budget is in deficit and borrowing must take place to make up the difference, so you will also be asked to discuss the level of the national debt. All of these areas have been highly prominent in the news and political discussions and wrangling and will be even more prominent over the next year. As mentioned in the first module home it is impossible to separate macro economics from the political system and that will never be more true then right now after concluding our election. The case will require you to determine and discuss the major sources of revenue and expenditures of the federal government, the level of debt, and your opinion and concerns about the debt.

There are also two questions in the case that put you right in the middle of the action. In one you will assume the position of the Chief Economic Advisor to the President. The President has asked you to review the recommendations of two deficit reduction committees and choose the two you feel are the best ways to reduce the deficit, of course you must justify your choices. You will also need t choose two proposals that you like the least. The second question in this series places you in the position of the President and requires you to come up with specific suggestions to reduce the rate of unemployment.

The SLP explores another controversial issue, lobbying. You will become a lobbyist for your organization and explain what actions you would lobby for in Congress. There are many that feel lobbying provides a valuable purpose by keeping politicians aware of specific issues and facts. Others equate lobbying with influence peddling that provides special interests with too much influence. The objective of this SLP is to put you into the middle of this area by representing your organization with a lobbying effort.