Write 150-500 words (excluding citation information).
Directly address and fully develop all aspects of the prompt.
Cite at least one image from the eBook Art: A Brief History, as an example in your post. Directly discuss the cited image to support your comments. Include the image’s page number, name of artist, and title of the work in your posting.
Embed the eBook image you chose to discuss into your post. If you have the newest version of VitalSource Bookshelf, you can copy and paste directly from the eBook into your post. Alternatively, screenshot the artwork (shift-command-4) and then upload the .png file, which saves to your desktop, into your post using the image icon on the toolbar.

Include the page number or figure number of the eBook image discussed.
Use quotation marks and an in-text citation when directly quoting a source or the eBook, use an in-text citation when paraphrasing, and end your writing with any necessary reference citations. In-text Citation Example: (Stokstad, page #)
Should outside sources be used, ensure all outside sources are properly cited. You may use website such as easybib.com to help you with those. It is important that you credit your sources.
Wikipedia may not be used.

Deficit Spending

During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spending on safety net programs rise. So, there are not too many good options available to resort the health of the national economy. It will be very difficult to defend cuts in the federal government programs and especially the programs geared to sustain the minimum of the standard of living for the recent “poor.” So, government needs to increase its borrowing. Deficit spending refers to government spending exceeding what it brings in federal income and corporate taxes during a certain period. Deficit spending hence increases government debt. Most economists accept that deficit spending is desirable and necessary as part of countercyclical fiscal policy. In such a case, government increases its borrowing and hence its deficit to compensate for the shortfall in aggregate demand. This is derived from Keynesian economics, and has been the mainstream economics view. Following John Maynard Keynes, many economists recommend deficit spending to moderate or end a recession, especially a severe one. When the economy has high unemployment, an increase in government purchases creates a market for business output, creating income and encouraging increases in consumer spending, which creates further increases in the demand for business output. (This is the multiplier effect). This raises the real gross domestic product (GDP) and the level of employment and lowers the unemployment rate. Government borrowing under such circumstances increases the demand for borrowing and thus pushes interest rates up. Rising interest rates can “crowd out” (discourage) fixed private investment spending, canceling out some of the demand stimulus arising from the deficit
Write an essay analyzing the advantages and disadvantages of deficit spending and the effects of federal government borrowing on the economy i.e., the “crowding out” effect.
Complete this essay in a Microsoft Word document, and in APA format. Note your submission will automatically be submitted through “TurnItIn” for plagiarism review. Please note that a minimum of 700 words for your essay is required.

Your paper should be structured as follows

1. Cover page with a running head
2. Introduction: What is deficit spending and how does it work.
2.1. Advantages
2.2. Disadvantages
3. Crowding-out Effect
4. Conclusions: Do you believe that deficit spending helps or hinders short-term and long-term economic growth?
5. References

Purpose: The purpose of this assignment is to begin drafting your academic argumentative research paper.

Description: In this assignment, you will first write your literature review; then, you will write your introduction. Please see “Lesson 4: The Introduction” for details on why it is suggested that you begin the drafting process with the literature review instead of the introduction. The following details are requirements of the assignment:

    Introduction (9-12 well-developed sentences/approximately 350 words): For more details about what is expected for each of the following sentences, please see “Lesson 4: The Introduction.” You may also want to review the “Example Introduction and Literature Review (with comments).” The following components must be included in the introduction (in the following order).
        Sentence 1: Introduce the general topic
        Sentence 2: Pro side (general)
        Sentence 3: Con side (general)
        Sentence 4: Narrow the scope (1)
        Sentence 5: Examples of the narrowed topic
        Sentence 6: Narrow the scope (2)
        Sentence 7: Specific controversy
        Sentence 8: Pro side (specific)
        Sentence 9: Con side (specific)
        Sentence 10: The thesis
    Literature Review (800-900 words): For details about the structure of the literature review, you will want to review “Lesson 3: The Literature Review: The Process.” You may also want to review the “Example Introduction and Literature Review (with comments).” The link is below.
        Literature review preface: This paragraph acts as a guide to what the reader can expect in the literature review.
        Literature review body: This section includes three to four body paragraphs that discuss the history, terminology, and both sides of the controversy (pro and con).
        Literature review conclusion: The conclusion signals that the literature review is ending, but it also acts as a kind of preface for the body of the paper by restating the thesis statement and establishing your argument once again.
    Demonstrate how to summarize and paraphrase source materials.
    Demonstrate the avoidance of plagiarism through proper use of APA citations and references for all paraphrased and quoted material.