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Political science assignment

March 23, 2018 0 Comment

· 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:


Key Questions:

· 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/

Key Questions:

· 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

Key Questions:

· 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?


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