Major Debates Over Macroeconomic Policy

Purpose of Assignment This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions. Assignment Steps Select two subjects from the following list of topics Create a 5- to 10-slide Microsoft® PowerPoint® presentation to present: Active monetary and fiscal policyIncreased government spending to fight recessionsReducing federal government’s discretionary powersZero-inflation targetBalanced government budgetTax incentives for savingEvaluate both the advocates’ position and the critics’ position.Determine which position you support and defend your position. Cite a minimum of three peer-reviewed sources not including your textbook. Format consistent with APA guidelines. Please include speaker notes for each slide. Attached you will find the grading guide for this assignment.

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Short-Run Economic Fluctuations Grading
ECO/372 Version 10
Principles of Macroeconomics
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Short-Run Economic Fluctuations
Grading Guide
ECO/372 Version 10
Learning Team Assignment: Short-Run Economic Fluctuations
Purpose of Assignment
Students will example the model economists use to analyze the economy?s short-run fluctuations?the model of
aggregate demand and aggregate supply. Students will learn about some of the sources for shifts in the
aggregate-demand curve and the aggregate-supply curve and how these shifts can cause fluctuations in
output. Students will be introduced to actions policymakers might undertake to offset such fluctuations.
Students will see why there is a temporary trade-off between inflation and unemployment, and why there is no
permanent trade-off.
Resources Required
National Bureau of Economic Research
Grading Guide
Not Met
Students selected an organization the team is
familiar with or an organization where a team
member currently works.
Students identified the three key facts about
short-run economic fluctuations and how the
economy in the sort run differs from the
economy in the long run.
Students explained economic fluctuations and
how shifts in either aggregate demand or
aggregate supply can cause booms and
recessions using the model of aggregate
demand and aggregate supply.
Students explained how monetary policy
affects interest rates and aggregate demand.
Students analyzed how fiscal policy affects
interest rates and aggregate demand.
Students evaluated why policymakers face a
short-run trade-off between inflation and
Students evaluated why the inflationunemployment trade-off disappears in the
long run.
Presentation consists of 15 to 20 slides and is
appropriate for the audience.
The presentation includes relevant media and
visual aids that are consistent with the
Short-Run Economic Fluctuations
Grading Guide
ECO/372 Version 10
Presentation Guidelines
Not Met
The presentation is laid out with effective use
of headings, font styles, font sizes, and white
Intellectual property is recognized with in-text
citations and a reference page.
The presentation includes an introduction and
conclusion that preview and review major
Major points are stated clearly; are supported
by specific details, examples, or analysis; and
are organized logically.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:

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