Discussion "Encouraging Your Economic Growth"

User Generated

HFNSZBZ1973

Economics

Description

This is a discussion question, please read below for everything that needs to be addressed for this discussion and please...NO PLAGERISIM!

In this discussion, we should make an attempt to bring topics covered this week (government spending, debt, fiscal policy, and economic growth), closer to home as we are all faced with spending and budgeting challenges in one way or another. This week’s discussion addresses two specific issues:

  • First, provide supporting arguments on a strategy you could apply to your economic life at home
  • Second, determine how this information can be used to encourage our own economic growth.
  • When addressing the issue raised by this question, make certain you understand the following points:

    An increase in government spending or a decrease in taxes will increase aggregate demand and shift the AD curve to the right.

    A decrease in government spending or an increase in taxes will decrease aggregate demand and shift the AD curve to the left.

    Changes in government spending affect aggregate demand directly because it is a direct component of AD (Y = C + I + G + NX).

    Changing taxes affects aggregate demand indirectly.

  • a. Changing taxes on income causes changes in the level of consumption, one of the four components of aggregate demand.
  • b. Changing taxes on businesses changes their incentives regarding investment spending: another component of aggregate demand.
  • Government policy actions that lead to increases in aggregate demand are called expansionary policies.

    Government policy actions that lead to decreases in aggregate demand are called contractionary policies.

    The use of fiscal policy is straightforward with regards to stabilizing the economy through the use of fiscal policy but the implementation of effective policy is much more difficult.

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    Explanation & Answer

    Attached.

    Running head: Economics; Encouraging Economic Growth

    Economics Discussion Questions Outline
    [Student Name] (Day/Day 0:00 – 0:00)
    [Course Number]: [Title]
    Instructor: [Name]
    [Date]

    1

    Encouraging Economic Growth

    2
    ASSIGNMENT OUTLINE

    Abstract
    Q1
    Q2
    Aggregate Demand in detail
    Fiscal and Monetary Policies
    Conclusion
    Reference


    Running head: Economics; Encouraging Economic Growth

    1

    Economics Discussion Questions
    [Student Name] (Day/Day 0:00 – 0:00)
    [Course Number]: [Title]
    Instructor: [Name]
    [Date]

    Abstract
    Economics is the study of how scarcity and utility of resources as well as responses to certain
    incentives has a whole bearing on the development, or non-development of an individual, entity
    or a sovereign country. Individual decisions can be categorised into microeconomics while
    macroeconomics study the whole economy as a whole.

    Encouraging Economic Growth

    2
    Question 1

    One strategy to reduce daily spending can be an effective way of improving the economic life
    back at home. Putting money away can result in savings because you can track each and every
    expense. For instance...


    Anonymous
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