Week of May 8, 2015

Monday, April 22, 2013

Economics final project

http://www.usdebtclock.org/

http://research.stlouisfed.org/fred2/

http://www.federalbudgetchallenge.org/pages/overview

http://www.nathannewman.org/nbs/

http://greenplug.nu/the-us-budget-explained/

Use the links to the US debt clock, the St.Louis Fred, the national budget simulation, and the federal budget channenge to identify problems and possible solutions to the fiscal problems of the US. Make sure to include current numbers from the Fed when you identify the national goals.

Part I

What is the current state of the US economy? Identify the four US national goals and what the US budget should be to maintain these goals.

Why does the US have a debt of over $18 trillion?

Identify the trend.

Can the current annual deficits be continued indefinately into the future? How long can this trend continue according to the budget hero?

Identify three ways to balance the budget? How much revenue was lost with the Bush tax cuts. Should those tax cuts be allowed to lapse this summer? Why or why not?

Part II

Complete the federal budge challenge, print out your budget.

Explain if you took a liberal, conservative or independent perspective in trying to balance the budget.

Explain what your goals are and how you met or did not meet them in the simulation.

Was your simulation politically feasible in today's climate? Could you be elected? Explain

Part III

Explain how you were or were not able balance the budget.

What if anything will you have to do to make your solution politically feasible?

If the US is to get the future budget under control, how will we do it?

Part IV

Opinion: are you optimistic or pessimistic about the future of dealing with the deficit and the US national goals? Explain your answer.

Week of May 4, 2015

Chapter 15 Fiscal Policy
Read the Profile of John Maynard Keynes  (402)
1. Before Keynes what did most economists think the role of the government should be?   How did Keynes change this role?   Why are Keynes' views controversial today?

15(1) Understanding Fiscal Policy (387)
2. Look at 15.1 (388) What is the role of the OMB (Office of Management and Budget)? Why do you think Congress has a CBO (Congressional Budget Office)?
3.  Look at 15.2 (389) What happens to aggregate demand when the government increases its spending?
4. Look at 15.3 (390)  How might cutting taxes have a similar effect to government spending?
5. Read the Global Connections (392) what happened in Japan when it tried an expansionary fiscal policy?  Why not?
Answer questions #1-6 on page 393.  Odd/Evan

15(2) Fiscal Policy Options
Define :
classical economics
Keynesian economics
supply-side economics
multiplier effect
automatic stabilizer
productive capicity
What is pictured on page 397?  Why?
Answer questions 5+6 on page 401

15(3) Budget Deficits and National Debt
What is the difference between national debt and national deficit?
1. Look at the chart 15.9 (404)  What affect did the Bush (2002-2009 budgets) tax cuts have on the annual budget?
2. Look at 15.10 (406)  what is the point of the chart?
3.  Look at 15.11 (407)  What is crowding out?
4. Look at fast fact (407) What would be a problem with a federal balanced budget amendment?
Answer question 4 on page 408.