Political science assignment
· Answer each section of the three sections in a short essay (whole paper should be 2 pages)
· Must include references page.
Topic 1: Recessions and Business Activity
The Recession, Wal-Mart Style, Stephanie Rosenbloom, New York Times, June 6, 2009: http://www.nytimes.com/2009/06/07/weekinreview/07rosenbloom.html
Automakers Rebound as Buyers Go Big, Mike Ramsey, Wall St. Journal, January 3, 2014: https://www.wsj.com/articles/chrysler-december-us-sales-rose-6-1388755089
The Great Recessions Effect on Entrepreneurship, Scott Shane, Economic Commentary, Federal Reserve Bank of Cleveland, March 24, 2011:
· How do recessions impact firms in general (consider how consumers are impacted and how this may translate to sales/revenue impacts on firms)?
· How might recessions benefit some firms? Consider the Wal-Mart example above. Can you think of companies or industries that may actually thrive during a recession?
· How might firms recover from recessions? Consider the auto industry above. Can you think of companies or industries that emerged from the recession with growth during the expansion?
· What is the impact of recessions on entrepreneurship? How does a recession impact entrepreneurs?
Topic 2: Fiscal Policy
Fiscal Policy, David Weil, The Concise Encyclopedia of Economics: http://www.econlib.org/library/Enc/FiscalPolicy.html
U.S. Fiscal Policy: Reality and Outlook (2016), Fernando Martin, Economic Synopses No. 10: https://research.stlouisfed.org/publications/economic-synopses/2016/05/20/u-s-fiscal-policy-reality-and-outlook/
· What is fiscal policy? How does the government use fiscal policy to influence the economy?
· What are the main expectations regarding U.S. fiscal policy according to the article by Fernando Martin?
· What are your thoughts on fiscal policy? What should the U.S. do going forward? Be sure to support your answer.
Topic 3: Monetary Policy
Federal Open Market Committee: http://www.federalreserve.gov/monetarypolicy/fomc.htm
GDP, Bureau of Economic Analysis: http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
Employment Situation, Bureau of Labor and Statistics (see Employment Situation Summary Table A): http://www.bls.gov/news.release/empsit.toc.htm
CPI, Bureau of Labor and Statistics (see the CPI news release summary): http://www.bls.gov/cpi/news.htm
Calendars, Federal Open Market Committee (see the Statement:PDF from the Oct. 31-Nov. 1 meeting): http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
· How does the Federal Open Market Committee determine monetary policy?
· Provide a brief analysis of U.S. GDP (examine current GDP and recent changes).
· Provide a brief analysis of the U.S. employment situation (examine current employment data and recent changes).
· Provide a brief analysis of the CPI (examine current price levels and recent changes).
· Provide a brief summary of the Federal Reserve press release.
· If you were to provide a recommendation regarding monetary policy based on your analysis above, what would you suggest? Would you agree or disagree with the recent statements by the Federal Open Market Committee? Why?