Economics Homework Help

Is a recessionary or inflationary gap bad for an economy?

Have you ever wondered how the federal government and the Federal Reserve react to smooth out recessionary and inflationary gaps?

In this activity, you will explore the concepts of fiscal policy and the attempts the U.S. government takes when the U.S. economy is in a recessionary or inflation gap. You will consider the concepts of aggregate supply and aggregate demand to determine how the U.S. economy can work its way back to long-run equilibrium based.

IMPORTANT

COMPLETE THE FOLLOWING

Locate a recent article (published within the last year) that discusses fiscal policy and whether the U.S. economy is in an inflationary or recessionary gap. You can use the Hunt Library, newspapers, news stations, or other credible sources to locate an article. Analyze the article and then address the following concepts below your discussion.

THE FOLLOWING WILL BE COMPLETED?

Consider the following for our in-class discussion:

Interpret recessionary and expansionary gaps within the economy. 

Explain the inter-workings of fiscal policy tools. 

State how taxation and government spending works. 

Differentiate between fiscal and monetary policy. 

Demonstrate the mechanics of discretionary fiscal policy within the Keynesian framework. 

• In responding to your peers state:
• Whether you agree or disagree with the findings and why
• A probing question that facilitates further discussion of the topic

Required Course Materials

Title: Economics

ISBN: 978-1337617383 Hardcover

ISBN2: 978-1337670647 eBook

Authors: Arnold, R.

Publisher: Cengage Learning

Publication Date: 2019

Edition: 13th

Format: Textbook

Read the following chapters from your textbook: Economics, 13th edition (Arnold, 2019):

• Chapter 8 – Aggregate Demand and Aggregate Supply
• Chapter 9 – Classical Macroeconomics and the Self-Regulating Economy
• Chapter 10 – Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy
• Chapter 11 – Fiscal Policy and the Federal Budget

Review Chapter 3 – Supply and Demand: Theory

Review the slide presentations (PPTX) provided by the publisher of the textbook.

• Chapter 8 – Aggregate Demand and Aggregate Supply
• Chapter 9 – Classical Macroeconomics and the Self-Regulating Economy
• Chapter 10 – Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy
• Chapter 11 – Fiscal Policy and the Federal Budget