GRAND CANYON ECN360 WEEK 5 TO WEEK 8 DQs

Identify the Classical prescription for curing unemployment and contrast it with the Keynesian prescription. Which prescription do you agree with? Why?

mod 5 dq 2

In 2013-2014, the nation was struggling with a persistent high level of unemployment, low rates of economic growth, and high federal budget deficits. Explain how solutions to these economic problems conflict with one another. If you were economic dictator, how would you proceed against this set of problems?

mod 6 dq 1

Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this link is not as strong as classical economists believe? (Hint: Differentiate between the parties that save and those that invest, and their rationale.)

If the federal government were required to balance the budget each year, would this have a positive or a negative impact on the economy? Why?

mod 7 dq 1

“In many ways, the Federal Reserve does not control the level of interest rates nor the money supply. Rather, this is controlled by the actions of individual banks throughout the economy.” Explain the rationale behind this statement. What action is required by the banks for Federal Reserve policy to be effective in stimulating the economy? What can the banks do to negate a Fed stimulus?

mod 7 dq 2

In 2014, short-term interest rates were near zero, and yet the economy was still sluggish with low rates of economic growth and relatively high unemployment. What monetary policies should be pursued in such an environment? How might they work?

mod 8 dq 1

Policies established by the World Bank and the IMF have been the subject of much criticism, especially from the developing world. Why might developing world nations be critical of these policies? Do you think the policy actions are justified? Explain.