Reference no: EM133185725
Discussion 1.
This chapter discussed, in detail, the "how" of national income accounting. Yet clearly not "everything" is counted. Based on the impact of COVID 19, do you think a recession could "look" worse than what it is, due to how GDP is calculated?
If your last name begins with A-L, argue that a recession could look worse than it really is.
Discussion 2.
In 2020, the United States found itself in a recession due to Covid 19. During this time period, the US experienced unprecedented unemployment rates. Conduct an Internet search on the impacts of Covid 19 and the unemployment rate. What industries are impacted more by Covid 19 and why?
Discussion 3.
Why does a downshift of the consumption schedule typically involve an equal upshift of the saving schedule? What is the exception to this relationship ?
Discussion 4.
Why is saving called a leakage? Why is planned investment called an injection? Why must saving equal planned investment at equilibrium GDP in a private closed economy?
Discussion 4.
In 2020, the United States passed a $2 trillion stimulus plan aimed at helping people, families, businesses, and the economy cope with the disastrous effects of the Covid 19 pandemic.
What impact will this plan have on aggregate demand and supply in the United States over the next 5 years?
Discussion 5.
Some politicians have suggest that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession.
Discussion 6.
Why is the banking system in the USA referred to as a fractional reserve banking system? What is the role of deposit insurance in a fractional reserve system?
Discussion 7.
Explain how merchants accepted gold receipts as a means of payment even though the receipts were issued by goldsmiths, not the government. What risk did goldsmiths introduce into the payments system by issuing loans in the form of gold receipts?
Discussion 8.
What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy?
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