lease answer:
Reference: Krugman/Wells Macroeconomics 4e
What do you think are the causes of the current state of the economy?
Why are we growing so slowly? Are we growing so slowly?
What role do financial markets and institutions play in U.S economic growth? What about ‘leverage’?…. Too high, too low, and what do we do about it?
Should subsidies and tax breaks to business (corporate welfare to agriculture, forestry, export promotion, research and development, removal of dividends tax etc. ) be the focus or should subsidies go to individuals (subsidies to education, social security, unemployment insurance, aid to families with dependent children, Medicare etc.) ?
How will the programs proposed affect future growth possibilities for the economy (how will they effect the PPF and long run aggregate supply)?
With respect to recent Federal Government Fiscal Stimulus packages and Federal Reserve policies to control liquidity and counter the credit crisis, what has the Federal Government and the Federal Reserve been doing? Why? What policy tools have they been using?
Inflation has traditionally been a concern of the Federal Reserve. Recently, there has been the possibility of deflation. Should the Fed be concerned with deflation of prices? What about targeting ‘nominal GDP’?
When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories?