Devote of narrative text preparing your answer
Essay. Work must be printed on 8.5 x 11 inch paper with 1-inch margins and 12-point TimesNew Roman font, double-spaced. Additionally, handwritten items may also be included for such things as graphs when convenient. They are not counted as part of minimum or maximum page length. This is an “open book” take-home essay. This is not a research paper, and you should not be relying very much on outside sources for material. Accordingly, you are expected to draw on assigned readings and classroom discussions and diagrams to support your answers. Also, while you may share ideas, each student must ultimately construct and write individual papers.
Final Essay Topic: Compare and contrast the strengths and weaknesses of fiscal policy and monetary policy.
To get you started concentrate on two distinct chapters in the Schiller textbook. See chapter 11 for an analysis of the strengths of fiscal policy, with some weaknesses. See chapter 12 for key limitations to fiscal policy. Then, see chapters 13, 14 and 15 to explore how monetary policy works, and its benefits. Especially, concentrate on chapter 15 to find the failings and problems with monetary policy.
Hints — Within your answers, consider the following:
1. Identify and summarize the market dynamics involved in both kinds of centrally coordinated policies.
2. Who is in charge of these policies, and how do their different multipliers work?
3. Given your analysis here and, using your knowledge from ALL of the material we have covered this semester, what are the best ways to solve macroeconomic problems?
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