Description
Purpose of Assignment
This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions.
Assignment Steps
Select two subjects from the following list of topics and write a 1050-word analysis:
- Active monetary and fiscal policy
- Increased government spending to fight recessions
- Reducing federal government's discretionary powers
- Zero-inflation target
- Balanced government budget
- Tax incentives for saving
Evaluate both the advocates' position and the critics' position.
Determine which position you support and defend your position.
Cite a minimum of three peer-reviewed sources not including your textbook.
Format consistent with APA guidelines.
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Explanation & Answer
Attached.
Running Head: ISSUES IN MACROECONOMICS
Issues in Macroeconomics
Student’s Name
Institution of Affiliation
Course
Date
1
ISSUES IN MACROECONOMICS
2
Balanced government budget
Introduction
For quite a long period of time, Americans have been pulled by the idea of ensuring
budget balance through the legislature. Being a requisite in the United States of America, a
balanced budget amendment was constitutionally introduced to ensure that the government
cannot spend more in comparison to its income. This, therefore, requires a balance between
projected expenditures and receipts of the government (Wagner & Tollison, 2012).
A balanced economy for a nation is a clear indicator of certainty and assurance for
organizations, businesses, and institutions for the progress ahead. Should action be taken now,
individuals can be assured of out-of-control Growth in terms of the national debt. Beforehand,
installments for investments on debts and the future assessment expanded (Wagner & Tollison,
2012). Passing certainty in the reliability of America is likely to undermine the opportunity and
how vital the economy is. Therefore, it is essential for America to leave the comfort zone and
step up to better its economy more so when it comes to America’s credit (Wagner & Tollison,
2012).
Evaluation of the advocates' position
The federal government of the United States has progressively run a budget deficit since
the administration of Clinton. As time progresses, budget deficits have resulted in increasing
levels of federal debt. This indeed, according to advocates, points that, support of a balanced
budget points towards increasing federal debt levels a...