You have just been randomly selected to participate in a student focus group conducted by the Council of Economic Advisers (Links to an external site.). Your selection does not imply that you supported the President in the last election or that you agree with his views.
In preparation for the focus group meeting you are asked to prepare a written Discussion Board Post which describes the state of the aggregate economy and outlines possible policy options that can be pursued by the administration during the next 2 years. Your post should consist of your complete responses to the four questions posed below. At least one complete paragraph should be devoted to each question. Please number your responses to the questions below and carefully read the â€œRequirementsâ€ section below. Your posting should employ economic reasoning and apply the concepts that you have learned in Econ 2 Online.
1. What do current economic data tell us about the health of the economy? Assess the current health of the U.S. economy by evaluating the key economic indicators that we have looked at in this course. How close is the overall economy to potential GDP and the natural rate of unemployment? Is the economy experiencing an inflationary or recessionary gap? The relevant economics statistics that you should discuss include the growth rate of real GDP, the unemployment rate, and the inflation rate at a minimum. You are encouraged to discuss and evaluate other economic indicators that could add to a more complete picture of the current state of the economy. Do you detect any areas of weakness in the aggregate economy? Does an upsurge in inflation appear to be a concern for policy makers? Please use the latest data that are available.
Much of the basic information that you need to complete this question should be available to you from previous discussions although you are encouraged to refer to other online sources. The FRED website is a valuable resource for current economic statistics: https://fred.stlouisfed.org/ (Links to an external site.) The FRED Policy Dashboard: https://research.stlouisfed.org/dashboard/8781 (Links to an external site.) is a good source to review the basic macro indicators that we have studied in Econ 2 Online. You are welcome to include tables and/or charts to illustrate your data as long as you cite your source(s) carefully. Trading Economics (Links to an external site.) is another useful source for the latest economic statistics: https://tradingeconomics.com/united-states/indicators (Links to an external site.)
2. Since the trough of the last recession in 2009 the United States has experienced the longest business cycle expansion on record although the upswing has been characterized by relatively low rates of economic growth. Outline and discuss two macroeconomic factors that could decrease aggregate demand (AD) and create a recessionary gap ending the expansion. Please review sections 11.4 (Links to an external site.) and 12.1 (Links to an external site.) of your text before answering this question. When do you expect the next recession to occur? Why?
3. Make the argument for why the United States should eliminate completely all of its trade barriers to imports from other countries-even if other countries continue to keep their barriers to U.S. products. This would mean that the United States should give up trying to negotiate reciprocal â€œfairâ€ trade deals with its major trading partners (China, European Union, Canada, Mexico) Make the argument as strongly as you can utilizing the information in Chapters 20 and 21. You are welcome to bring in outside sources as long as you cite them properly.
Do you believe your argument? Explain why or why not using economic reasoning. Do any of the arguments in support of restricting imports outlined in Section 21.3 (Links to an external site.) of your text support justify the administrationâ€™s decision to increase tariffs on Chinese goods? Explain your reasoning. Do you approve or disapprove of the administration’s decision to increase tariffs on $200 billion of Chinese goods from 10% to 25%? Why?
4. The Council of Economic Advisers requests that you carefully describe and explain at least two long runmacro policy options that the President can consider to boost productivity growth and potential GDP. These policies should shift the Long Run Aggregate Supply curve (LRAS) out over time. Please note that fiscal and monetary policies are not long run policies. Discuss which perspective was more useful in developing your two policy options: the Keynesian Perspective or the Neoclassical Perspective? Utilize the AD/AS framework in framing your answer.
-In total your post should be at least 4 paragraphs with at least one numbered paragraph devoted to each question above.
– Apply at least four economic concepts (Key Terms) from Chapters 11, 12, 13, 14, 15, 16, 17, 18, 20, and 21 in your post.
-Make sure that you highlight and/or bold each Key Term that you apply and include the chapter reference to the text in parenthesis.
*****LINK TO ONLINE TEXT BOOK******* (for above requirements)
-You are required to cite at least two recent online sources to support the statements in your post. Your task is to find â€œauthoritativeâ€ online sources written by economists or serious economic journalists with macro content and then explain the information in your own words.
-Cite any and all outside sources, including blogs and websites with enough detail so that I can easily find it. The APA (Links to an external site.) style of citation is recommended although the MLA & Chicago styles are acceptable also. Include a reference (works cited) list for all of your sources. The Saddleback College Library has resources that will help you cite your sources. See: https://www.saddleback.edu/library/citation Provide a hyperlink for all information from the internet so that the reader can find the article/post quickly on the web.