Discussion questions due 8/25/14

timer Asked: Aug 24th, 2014

Question Description

Explain how a decrease in aggregate demand affects each of the following variables: inflation, unemployment rate, production, employment rate, and consumer confidence. Provide concrete examples to support for your response.  You will find several helpful articles in the Instructor Insights.

Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.  Explain your reasoning.

Choose a time frame whether it be current or historical, describe the economic situation and explain the appropriate fiscal policy that should be or was used to help stabilize the economy. Provide support for your response.

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