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Topic 1 The national income accounts measure productivity, spending, and income; but these accounts were not designed to measure economic welfare. Discuss aspects of economic welfare ignored in GDP. HINT: Do a “Google” search on the Genuine Progress Indicator and compare this with GDP in terms of measuring economic welfare. Discusson Topic 2 of 2 Topic 2 What factors might contribute to a low growth rates in a country? Why do some poor countries, such as Botswana, experience higher growth rates than others when all face the same challenges such as the HIV epidemic? Compare growth rates across countries by visiting The World Bank website (http://data.worldbank.org/indicator). How does GDP growth (GDP growth (annual %)) compare across developed countries such as the U.S. and poorer countries such as Nigeria. Why might growth rates of developed nations be lower than those of poorer countries? unit 8 Discussion Topic 1 of 2 Topic 1 Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy? Discussion Checklist: What are the key tools of fiscal policy and monetary policy Why might each of these policies not be effective in reducing high levels of unemployment Why might changes in unemployment be a lagging indicator in an economic recovery Discuss the possibility that monetary and fiscal policy actions might actually destabilize the economy and reductions in unemployment Discussion Topic 2 of 2 Topic 2 What factors might cause the marginal propensity to consume to change? If the MPC increases from 0.50 to 0.75, what happens to consumption and ultimately GDP when household income rises? What do you think happened to MPC after the last recession? Explain. unit 9 Discussion Topic 1 of 2 Topic 1 There is always debate regarding the structure of the current income tax system in the U.S. Many opponents of the current system argue that under its current structure, many wealthy households are able to avoid taxes and for most households, the tax system is simply too complicated and confusing. One solution that has been proposed is the “flat tax.” What are the benefits and detriments of replacing the current income tax system with a flat tax system? Who benefits and who might be harmed? What implications does the flat tax system have for tax preparation companies such as H&R Block? Discussion Topic 2 of 2 Topic 2: In 2008, Federal Reserve Bank Chairman, Ben Bernanke, and U.S. Treasury Secretary, Henry Paulson, responded to the financial crisis by intervening in financial markets in unprecedented ways. Do you think this intervention was necessary? What are the consequences of this intervention? What might have happened if they had not intervened?

Topic 1

The national income accounts measure productivity, spending, and income; but these accounts were not designed to measure economic welfare. Discuss aspects of economic welfare ignored in GDP. HINT: Do a “Google” search on the Genuine Progress Indicator and compare this with GDP in terms of measuring economic welfare.

 

Discusson Topic 2 of 2

Topic 2

What factors might contribute to a low growth rates in a country? Why do some poor countries, such as Botswana, experience higher growth rates than others when all face the same challenges such as the HIV epidemic? Compare growth rates across countries by visiting The World Bank website (http://data.worldbank.org/indicator). How does GDP growth (GDP growth (annual %)) compare across developed countries such as the U.S. and poorer countries such as Nigeria. Why might growth rates of developed nations be lower than those of poorer countries?

 

 

unit 8

 

Discussion Topic 1 of 2

Topic 1

Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy?

Discussion Checklist:

  1. What are the key tools of fiscal policy and monetary policy
  2. Why might each of these policies not be effective in reducing high levels of unemployment
  3. Why might changes in unemployment be a lagging indicator in an economic recovery
  4. Discuss the possibility that monetary and fiscal policy actions might actually destabilize the economy and reductions in unemployment

 

 

 

 

Discussion Topic 2 of 2

Topic 2

What factors might cause the marginal propensity to consume to change? If the MPC increases from 0.50 to 0.75, what happens to consumption and ultimately GDP when household income rises? What do you think happened to MPC after the last recession? Explain.

 

 

unit 9

 

 

Discussion Topic 1 of 2

Topic 1

There is always debate regarding the structure of the current income tax system in the U.S. Many opponents of the current system argue that under its current structure, many wealthy households are able to avoid taxes and for most households, the tax system is simply too complicated and confusing. One solution that has been proposed is the “flat tax.” What are the benefits and detriments of replacing the current income tax system with a flat tax system? Who benefits and who might be harmed? What implications does the flat tax system have for tax preparation companies such as H&R Block?

Discussion Topic 2 of 2

Topic 2:

In 2008, Federal Reserve Bank Chairman, Ben Bernanke, and U.S. Treasury Secretary, Henry Paulson, responded to the financial crisis by intervening in financial markets in unprecedented ways. Do you think this intervention was necessary? What are the consequences of this intervention? What might have happened if they had not intervened?

 

 

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