ECO202 MODULE2, CASE, SLP and TD

Fiscal Policy

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.

◦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 and the consequences of lobbying efforts.

•Discussion ◦Discuss the U.S. budget deficit.

Module Overview

The budget of the United States is made up of sources of revenue and expenditures. When expenditures exceed revenues the budget is in deficit and borrowing must take place to make up the difference. 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 page, it is impossible to separate macroeconomics from the role of government.

The Case Assignment focuses on the government budget and achieving the potential GDP. You will be asked to determine what type of fiscal policy is appropriate for the economy. You will also review some important concepts such as Okun’s Law from the background material.

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.