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The Fiscal and Monetary Policy and Economic Fluctuations
Paper instructions:
1. Discuss the current economic situation in the U.S. as compared to five (5) years ago.Include interest rates, inflation, and unemployment rate in your explanation.
2. Explain the changes in interest rates, inflation, and unemployment rates that your research yielded. Explain one reason for each of the changes in interest rates, inflation, and unemployment rates that you identified in Question 1.
3. Identify two (2) strategies based on fiscal and monetary policy that would encourage people to spend money in order to create economic growth.
4. Explain how the two (2) strategies that you identified in Question 3 could affect
the unemployment, inflation, and interest rates.
*The specific course learning outcomes associated with this assignment are:
– Analyze imperfectly competitive markets – monopoly, monopolistic competition,
and oligopoly – to understand their profit-maximizing decisions.
– Explain the factors and mechanisms of growth.
– Explain how governments use monetary and fiscal policy to manage the economy.
– Use technology and information resources to research issues in principles of
economics.
– Write clearly and concisely about principles of economics using proper writing
mechanics.