ECO 203 ASH Course,ECO 203 ASH Tutors,ECO 203 ASH Assignments Flashcards
ECO 203 Week 5 Final Paper Expansionary Economic Policy
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ECO 203 Week 5 Final Paper Expansionary Economic Policy
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In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Describe the actions the government would take in conducting expansionary fiscal policy and expansionary monetary policy.
Expansionary Fiscal Policy:
Review Chapter 7: Classical Macroeconomics and the Keynesian Challenge and Chapter 9: Taxes, Government Spending, and Fiscal Policy.
Explain the actions the federal government would take while engaging in expansionary fiscal policy in terms of the following:
The necessary change in taxes and government spending, The effect on aggregate demand, GDP, and employment.
Final Paper
Expansionary Monetary Policy:
Review Chapter 12: Banking and The Federal Reserve System and Chapter 14: Monetary Policy In Theory And Practice.
Identify the three tools available to the Federal Reserve Bank (The Fed) when conducting monetary policy. Explain whether the Fed would:
Increase or decrease the required reserve ratio Increase or decrease the discount rate Buy or sell government securities when conducting expansionary monetary policy
Explain how these actions would affect the money supply, interest rates, spending, aggregate demand, GDP, and employment.
Writing the Final Paper
The Final Paper:
- Must be 5 to 6 double-spaced pages in length and formatted according to APA style as outlined in your approved style guide.
- Must have a cover page that includes:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted - Must include an introductory paragraph with a succinct thesis statement.
- Must address the topic of the paper with critical thought.
- Must conclude with a restatement of the thesis and a conclusion paragraph.
- Must use at least four scholarly resources, including the textbook. Two references must come from the Ashford Library.
- Must use APA style as outlined in your approved style guide to document all sources.
- Must include, on the final page, a Reference List that is completed according to APA style as outlined in your approved style guide.
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ECO 203 Week 5 DQ 2 Economies In Transition
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ECO 203 Week 5 DQ 2 Economies In Transition
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Economies in Transition
The movement in the direction of a market-based system with freely determined prices, competition, profits, private ownership, and other features of capitalism is not simple. Discuss some of the challenges associated with an economy transitioning from socialism to capitalism.
Reference: Chapter 20, section 20.1: World Economic Systems, and section 20.2: Transition to a Market System.
Guided Response: Review several of your classmates’ posts. Respond to at least two of your peers by discussing the benefits and the costs of privatization of an economy. Pose questions that may assist your peers in extending their thinking
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ECO 203 Week 5 DQ 1 Foreign Direct Investment
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ECO 203 Week 5 DQ 1 Foreign Direct Investment
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Foreign Direct Investment
Imagine you are in charge of development for a developing country and were approached by a multina-tional corporation interested in locating in your country.
Identify some of the benefits and some of the costs to the host country from allowing a multinational corporation to locate in a country with a developing economy. Discuss with your classmates if developmental assistance from world developmental agencies, such as the World Bank or the United Nations, would be preferable to private investment.
Reference: Chapter 17, section 17.5: Help From The Private Sector: Multinationals.
Guided Response: Review several of your classmates’ posts and respond to at least two of them. In your reply, discuss how the concerns listed in their posts regarding private foreign investment could be alleviated through aide from world development agencies.
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ECO 203 Week 4 Quiz
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ECO 203 Week 4 Quiz
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1. M1 includes all but which one of the following?
2. The transactions demand for money depends on
3. Individuals accept dollars because
4. The fact that money is legal tender increases its
5. According to the M1 definition, the money supply consists of currency held by the public plus
6. To keep the federal funds rate from rising above the target zone, the Fed must
7. If the Fed sells government bonds on the open market, which of the following is likely to occur?
8. When the Federal Open Market Committee buys a government bond from a bank,
9. Transactions that involve the direct trade of one good for another are called
10. The ability of an asset to be converted easily and conveniently into the medium of exchange is called
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ECO 203 Week 4 DQ 2 The Effect of Bank Lending on the Company
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ECO 203 Week 4 DQ 2 The Effect of Bank Lending on the Company
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The Effect of Bank Lending on the Economy
In conducting expansionary monetary policy, even if the Federal Reserve Bank is providing reserves to the banking system, during a recession or during periods of slow economic growth, banks may choose not to lend out their reserves when interest rates are low and potential borrowers look risky. This is known as a “credit crunch”. Explain how a credit crunch affects economic growth. Specifically, answer these questions in your post:
- How does a credit crunch affect consumer spending and business investment?
- How does a credit crunch affect aggregate demand, GDP, and unemployment?
Reference: Chapter 14.1 Is Monetary Policy Effective? and section 14.3: Domestic Sectoral Effects.
Guided Response: Review the discussion board posts of your classmates. Respond to at least two of your classmates with responses that allow them to extend their thinking. Support your ideas with concepts found in the assigned reading
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ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007 To 2008 Recession
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ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007 To 2008 Recession
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Federal Reserve Bank Policy during the 2007-2008 Recession
From 2007-2010, the Federal Reserve Bank (the Fed) used many practices that had never before been seen from the central bank of the United States.
Discuss the some of the actions that the Fed took during this period. Such as:
- How the Federal Reserve’s lending practices changed during this period.
- What did the Federal Reserve do to support firms deemed “too big to fail.”
Do you believe these actions were necessary to avoid a collapse in the financial system? Support your opinion with information from the textbook or external source(s).
Reference: Chapter 12, section 12.4: Bank Failures During the Great Recession, Chapter 14, section 14.4: Monetary Policy in the 2000s, and Conclusions section at the end of the Chapter 14
Guided Response: Review the posts of your classmates and respond to at least two of your classmates by agreeing or disagreeing with their opinions on whether the Federal Reserve actions were necessary to avoid the collapse of the financial system.
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ECO 203 Week 3 Quiz
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ECO 203 Week 3 Quiz
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1. The time between the legislation of fiscal policy and its effect on output and employment is called
2. The federal income tax is
3. The largest single item in the federal budget is
4. The Investment Tax Credit
5. The measured deficit would be larger if
6. Opponents of discretionary fiscal policy believe that it
7. Keynes blamed economic downturns primarily on
8. Keynes argued that planned saving was
9. A structural deficit
10. When aggregate planned expenditure falls short of potential output, the economy experiences
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ECO 203 Week 3 DQ 2 Budget Deficits and the National Debt
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ECO 203 Week 3 DQ 2 Budget Deficits and the National Debt
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Budget Deficits and the National Debt
Between 2007 and 2011 the federal budget deficit grew from $160.7 billion to $1,299.6 billion, and the national debt grew from $8.9 trillion to $14.8 trillion. (Figure 10.1: The ratio of debt to GDP, 1977-2011.)
In your post, differentiate the budget deficit from the national debt. How do you think the increases in the budget deficits and the national debt will affect the economy in the future?
Reference: Chapter 10, section 10.1: Debt and Deficits, and section 10.4: Do Deficits Matter?
Guided Response: Review the discussion board posts of your classmates. Respond to at least two of your classmates with questions that allow them to extend their thinking. Support your ideas with concepts found in the assigned reading.
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ECO 203 Week 3 DQ 1 Government Fiscal Policy
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ECO 203 Week 3 DQ 1 Government Fiscal Policy
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Government Fiscal Policy
Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal government’s use of fiscal policy (the stimulus) to promote growth and employment. Support your ideas with concepts found in the assigned reading. Include the following in your response:
- Discuss some actions taken by the federal government and whether the recession would have been longer and the unemployment rate higher if the government had not acted by passing the stimulus package?
- If left alone, do you believe the economy would have corrected itself as suggested by Classical economic theory? Explain.
- Discuss the effect these policies had on increasing the size of the budget deficits and the national debt.
Reference: Chapter 9, section 9.4: More Recent Tax Changes, and Chapter 10, section 10.2: Early 1990s and 2000s Recessions.
Guided Response: Review the discussion board posts of your classmates. Respond to at least two of your classmates by agreeing or disagreeing with their posts. Support your ideas with concepts found in the assigned reading
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ECO 203 Week 3 Assignment Efforts to Reduce the Budget Deficit
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ECO 203 Week 3 Assignment Efforts to Reduce the Budget Deficit
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Efforts to Reduce the Budget Deficit
The rapid growth of the national debt alarmed some politicians and created pressure for restricting Congress’s unlimited ability to spend. After reviewing Chapter 10, Section 10.2: Efforts to Reduce the Deficit, write a 2-3 page paper, formatted according to APA style as outlined in your approved style guide, discussing the actions taken by the Congress since 1985 to reduce the budget deficits.
Include some authoritative sources on the current debate between the White House and Congress on what measures are necessary to address spending and revenues, i.e. news reports, official statements, press conferences, as well as numerous government websites.
Suggested references:
Ashford University Online Library (follow the Library link within the left-handed tool bar).
Congressional Budget Office: www.cbo.gov.
Internal Revenue Service: www.irs.gov.
The Executive Office of the President: www.whitehouse.gov.
The paper: Must be 2 to 3 double-spaced pages in length and formatted according to APA style as outlined in your approved style guide. Must have a cover page that includes: Title of paper Student’s name Course name and number Instructor’s name Date submitted Must include an introductory paragraph with a succinct thesis statement. Must address the topic of the paper with critical thought. Must conclude with a restatement of the thesis and a conclusion paragraph. Must use at least three references, including the textbook. One reference must come from the Ashford Library. Must use APA style as outlined in your approved style guide to document all sources. Must include, on the final page, a Reference List that is completed according to APA style as outlined in your approved style guide.
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ECO 203 Week 2 Quiz
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ECO 203 Week 2 Quiz
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1. The term “recession” refers to a
2. Who is NOT a loser in inflation?
3. The transfer of funds from savers to business investors takes place in the
4. If taxes increase and the AS curve is upward sloping, then
5. The turning points of the business cycle are called
6. As an economy recovers from a trough in the business cycle,
7. Short-term unemployment while searching for a new job is called
8. Economists use the phrase “business cycle” when discussing
9. In the circular flow model, how can households use their income?
10. The curve that shows quantities of total real output that will be offered for sale at various price levels
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ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation
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ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation
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Who Benefits and Who Loses from Inflation
Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.
Reference: Chapter 4, section 4.3: Gainers and Losers from Inflation.
Guided Response: Review and respond to at least two of your classmates’ posts by sharing any ideas you may have about how households and businesses can protect themselves against inflation. Be sure to refer to concepts found in the reading when responding to your classmates.
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ECO 203 Week 2 DQ 1 The Current State of the Economy and Unemployment
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ECO 203 Week 2 DQ 1 The Current State of the Economy and Unemployment
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Imagine a scenario where there is a decline in aggregate demand. Identify which part of the business cycle is part of a decline in aggregate demand. Gross Domestic Product (GDP) measures the amount of new production. A change in the amount of new production affects employment.
Describe what would happen to GDP, the unemployment rate and the inflation rate if there is a decline in aggregate demand.
Reference: Chapter 6, section 6.3: Aggregate Equilibrium and Changes in Equilibrium.
Guided Response: Review and respond to at least two of your classmates’ posts by discussing this question in terms of how a decrease in aggregate demand impacts GDP, and why the change in GDP affects unemployment
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ECO 203 Week 1 Quiz
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ECO 203 Week 1 Quiz
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1. If an individual’s income increases, then the demand for a normal good will
2. An example of investment, as defined in economics, is
3. All but which one of the following could shift the demand curve?
4. When a firm decides to replace some workers with robots in its production process, it is making a decision about one of the basic economic questions. Which one?
5. When price changes, one should expect a change in
6. Demand relates the various amounts that consumers are willing to buy over a specified time period
7. When the government redistributes income, it is answering a basic economic question. Which one?
8. Self-interested behavior and incentives are
9. Which of the following would be described as capital by an economist?
10. When price changes, there is an opposite change in the
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ECO 203 Week 1 DQ 2 Role of Government
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ECO 203 Week 1 DQ 2 Role of Government
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Role of Government
Economics is the study of how society chooses to allocate its scarce productive resources (labor, capital, land, entrepreneurial talent).
In a mixed economy, elements of both central planning and market allocation of resources are used in allocating productive resources.
The United States economy is a mixed economy, with a bias towards market allocation of resources.
This means most resources are allocated in the private sector by way of markets.
Discuss whether you favor a larger or smaller role of government in the economy. Refer to concepts found in the reading to support your opinion.
Reference: Chapter 2: Markets, Governments, and Nations: The Organization of Economic Activity
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