Assignment 2: Demand-side Policies and the Great Recession of 2008

Macroeconomic analysis deals with the crucial issue of government involvement in the operation of “free market economy.” The Keynesian model suggests that it is the responsibility of the government to help to stabilize the economy. Stabilization policies (demand-side and supply-side policies) are undertaken by the federal government to counteract business cycle fluctuations and prevent high rates of unemployment and inflation. Demand side policies are government attempts to alter aggregate demand (AD) through using fiscal (cutting taxes and increasing government spending) or monetary policy (reducing interest rates). To shift the AD to the right, the government has to increase the government spending (the G-component of AD) causing consumer expenditures (the C-component of AD) to increase. Alternatively the Federal Reserve could cut interest rates reducing the cost of borrowing thereby encouraging consumer spending and investment borrowing. Both policies will lead to an increase in AD.

Develop an essay discussing the fiscal and the monetary policies adopted and implemented by the federal during the Great Recession and their impacts on the U.S. economy.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 the economic meaning of a recession?
A brief discussion of fiscal policies
A brief discussion of monetary policies
3. Conclusions: Discuss the extent to which the use of demand side policies (fiscal policy and monetary policy) during the Great Recession of 2008 has been successful in restoring economic growth and reducing unemployment
4.6 References

“Write an essay (with introduction and conclusion) on the suggested topic.
Your introduction should include the thesis statement – main idea of the paper (here is more detailed explanation – https://essayshark.com/blog/how-to-write-a-thesis-statement-to-make-it-clear/). Don’t include any new information in the conclusion. It should  restate the thesis statement of the paper.
Support your ideas with relevant arguments and examples (in-text citations). List 2-3 sources in the references. Make sure you stick to a required formatting style. Get benefits of these sources citationmachine.net and easybib.com.
MLA format – https://owl.english.purdue.edu/owl/resource/747/01/ https://owl.purdue.edu/owl/research_and_citation/mla_style/mla_formatting_and_style_guide/mla_in_text_citations_the_basics.html”

Please read the following articles, which are attached:

Upper Middle Class Sees Big Gains, Research Finds by John Zumbrun, The Wall Street Journal, June 21, 2016
Struggling Americans Once Sought Greener Pastures Now Theyre Stuck by Janet Adamy and Paul Overberg, The Wall Street Journal, August 2, 2017
American Life is Improving for the Lowest Paid by Madison and Merrillville, The Economist, May 16, 2019

According to the first article, new research shows that the U.S. economic recovery in the aftermath of the 2008-09 financial crisis and recession is not solely confined to the top 1% of income earners. Several studies indicate how the upper middle class has now swelled to a quarter of the overall U.S. population, and that the largest income inequality is between this group and everyone else.

An increasing inequality in income is reinforced by the second article. Yet, a more recent article from journalists for The Economist suggests a reversal with an optimistic picture for lower wage workers in the United States.

Think about how the economic recovery of the past eight years has affected households differently, depending on income levels. I would like you to discuss reasons for this rising income inequality and consider policy actions to address income inequality, while pointing out practical considerations.

The following questions are intended to guide your thoughts as you participate in this weeks forum discussion. You are not expected to explicitly answer the questions.

Give two definitions of upper middle class households.
What has happened to the upper middle class since the 2008-09 financial crisis and subsequent recession, according to Stephen Rose of the Urban Institute? What are two possible reasons for this change?
Has U.S. income inequality has been growing or shrinking since 2009? What pieces of evidence support your claims? Between which two groups appear the biggest income divide now in this country?
What policy action could help to lower income equality in this country? What are the potential down sides of such an action on the overall economy?

the instruction is attached in the file. In fact, it is quite an open topic research, I hope we can talk a little before starting the writing.

instruction:
My expectation for the Mid-Term Paper is that it is a small research thesis. Theses have the following characteristics: first, there is a summary of a literature search. Second, there is an original assertion or a point of view. Third, there is validation of the assertion. The validation can come in diverse forms. It can come from a mathematical model, or a qualitative argument, or it can come from a sequence of linked arguments. Data can play an important role in the validation of the assertion. Fourth, there is a list of references. These references are essential if you have imported ideas or material – always a good thing to do, but it needs to be noted and recorded; the referencing should be done at the appropriate point in the main text.

I will welcome your thoughts on the incompleteness of models, but then you should also provide input on how this can be fixed. Similarly, I will also welcome ideas on whether current models are relevant or not, but then you should specify and explain how the relevancy of the model can be fixed and what researchers have done in this respect.

For your final assignment, lets consider the key topics learned in our class, including:

Optimal Decisions Using Marginal Analysis
Estimating and Forecasting Demand
Monopolistic Competition and Oligopoly.
Game Theory and Competitive Strategy
Decision Making under Uncertainty
Bargaining and Negotiation
Linear Programming
Please select one of the key topics listed, and address the following items:

(a) Provide a detailed description of the topic.

(b) Provide two examples of how the selected concept is applied.

(c) Discuss the challenges faced with the concept selected. As part of this discussion, how will the selected item be implemented in an organization and its significance?

(d) Discuss how the selected concept will change 5 years from now. What can the organizational leaders, financial analysts do today to ensure they are prepared for these advancements?

(e) Provide a graph chart or data with sample numbers indicating the topic you selected?

Parameters:

The paper must be in Times New Roman, 12-point font, double-spaced, and APA formatted.

(a) Please include a title page, introduction, and conclusion.

(b) Please ensure that at least FIVE credible references are used, and make sure to cite them.

(c) Word count is between 1,250-and-1,500-words.

1. Watch the film Whos Counting, while watching, answer the following questions:
2. Note the problems Marilyn Waring discusses with respect to the use of GDP as our measure of economic progress.
3. List the problems that she discusses.
4. At one point in the film, Waring makes a number of comparisons, each time ending with the statement This is war. What comparisons does she make?
5. This film was made in 1995, and yet, I show it in class in 2021. Are the topics discussed in the film still relevant?
6. Write a question based on the film that you would like to see

https://www.youtube.com/watch?v=WS2nkr9q0VU
https://www.youtube.com/watch?v=BrnZMrjsf6w

Book Review:
Students are expected to research and select a book that deals with one of the Development issues covered in class. This assignment is an individual submission. The selected book must NOT be a textbook. Please see the last page for guidelines. The due date is indicated in the course outline below

Guidelines for Book Review:

A full book review may concern only one book. Its length is about 1500-2000 words. It should give readers an engaging, informative, and critical discussion of the work. The review should follow the Guidelines below.

The review should consider (please use as your outline):

    The intended audience for the book and who would find it useful
    The background of the author(s)
    The main ideas and major objectives of the book and how effectively these are accomplished
    The context or impetus for the book – – political controversy, implications of the book for research, policy, practice, or theory
    A comparison with other works on this subject
    Constructive comments about the strength and weaknesses of the book

The front page of your review should include:

    Your first and last name
    Your student id
    Author(s) or editor(s) first and last name(s) (please indicate if it is an edited book)
    Title of book
    Year of publication
    Place of publication
    Publisher
    Number of pages
    Price (please indicate paperback or hard cover) if available
    ISBN

Prior to the beginning of one class each week (e.g. prior to the Tuesday class or prior to the Thursday class), students are required to write a short summary of one of the required readings for that class and upload the summary to the course website. This summary should be between 300 and 500 words (approximately one page).

The summaries are posted under the assignments tab on canvas or can be found under each module. You have the option to upload either a PDF or a word document. The summaries are due by 1:00 am the day before the class and cannot be uploaded after that time.

There are 10 weeks of class. You need to complete 10 reading summaries; your lowest score may be dropped. If you make a reasonable effort and write something thoughtful, you will receive full credit. I expect that everyone should regularly be receiving full credit.

The summary should cover the following: (i) Why is the paper important (or why not)? (ii) An overview of the core contributions of the paper. (iii) What you liked or did not like about the paper. (iv) How the paper is connected to other studies in the course. (Organize the paper structure in lines with the questions given)

Required Reading List:

March 9, 2021: How can history inform policy?

Lowes, Sara and Eduardo Montero. 2017. Mistrust in Medicine: The Legacy of Colonial Medicine Campaigns in Central Africa, Working paper, Bocconi University.

Ashraf, Nava, Natalie Bau, Nathan Nunn, and Alessandra Voena. 2020. Bride Price and Female Education, Journal of Political Economy, 128 (2): 591641.

Prior to the beginning of one class each week (e.g. prior to the Tuesday class or prior to the Thursday class), students are required to write a short summary of one of the required readings for that class and upload the summary to the course website. This summary should be between 300 and 500 words (approximately one page).

The summaries are posted under the assignments tab on canvas or can be found under each module. You have the option to upload either a PDF or a word document. The summaries are due by 1:00 am the day before the class and cannot be uploaded after that time.

There are 10 weeks of class. You need to complete 10 reading summaries; your lowest score may be dropped. If you make a reasonable effort and write something thoughtful, you will receive full credit. I expect that everyone should regularly be receiving full credit.

The summary should cover the following: (i) Why is the paper important (or why not)? (ii) An overview of the core contributions of the paper. (iii) What you liked or did not like about the paper. (iv) How the paper is connected to other studies in the course. (Organize the paper structure in lines with the questions given)

Required Reading List:

March 4, 2021: Conflict

Dube, Oeindrila and Juan F. Vargas. (2010). “Commodity Price Shocks and Civil Conflict: Evidence from Colombia,” Review of Economic Studies, 80 (4):1384-1421.

Miguel, Edward, Shanker Satyanath, and Ernest Sergenti. (2004). “Economic Shocks and Civil Conflict: An Instrumental Variables Approach,” Journal of Political Economy, 112 (4): 72553.

Dell, Melissa, and Pablo Querubin. (2018). Nation Building Through Foreign Intervention: Evidence from Discontinuities in Military Strategies, Quarterly Journal of Economics, 133 (2): 701-764.

Prior to the beginning of one class each week (e.g. prior to the Tuesday class or prior to the Thursday class), students are required to write a short summary of one of the required readings for that class and upload the summary to the course website. This summary should be between 300 and 500 words (approximately one page).

The summaries are posted under the assignments tab on canvas or can be found under each module. You have the option to upload either a PDF or a word document. The summaries are due by 1:00 am the day before the class and cannot be uploaded after that time.

There are 10 weeks of class. You need to complete 10 reading summaries; your lowest score may be dropped. If you make a reasonable effort and write something thoughtful, you will receive full credit. I expect that everyone should regularly be receiving full credit.

The summary should cover the following: (i) Why is the paper important (or why not)? (ii) An overview of the core contributions of the paper. (iii) What you liked or did not like about the paper. (iv) How the paper is connected to other studies in the course. (Organize the paper structure in lines with the questions given)

Required Reading List:

February 25, 2021: Foreign aid

Nunn, Nathan and Nancy Qian. (2014). U.S. Food Aid and Civil Conflict, American Economic Review, 104 (6): 1630-1666.

Crost, Benjamin, Joseph Felter, and Patrick B. Johnston. (2014). Aid Under Fire: Development Projects and Civil Conflict, American Economic Review, 104 (6): 1833-1856.