AB/204 AB204 AB 204 UNIT 10 DISCUSSION 1

AB 204 UNIT 10 DISCUSSION 1

Unit 10: Debates in Macroeconomics - Discussion

General Information:

To be an effective learning tool the Discussion Board topics require your active discussion of the topic with at least two of your classmates.

• First post made during, or before, Saturday.
• Posts on at least 3 different days.
• Responses to at least two other classmates.
• Substantive posts that stimulate further active discussion, posts that accurately reflects the learning, that are logical, and clearly presented with correct spelling, word usage, and grammar.
• To be counted as a substantial post, your main post to the Discussion topics should be at least 200 words per Discussion topic.

Debates in Macroeconomics

The Discussion topics deal with the six debates over macroeconomic policy, which include stabilization policy, government spending, monetary policy on rules versus discretion, zero inflation target, balanced budget, public debt, and reforming tax laws.

Read Chapter 23, and remember to include references and links to the websites that are important contributors to your posts (comments). Respond to two of the following Discussion topics. 

Topic 1

There are pros and cons of using monetary and fiscal policy tools to stabilize the economy.

1. Explain the main arguments in favor of economic stabilization during recessions. Explain why policy lags could make stabilization policies counterproductive.
2. What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?