• Answer each section of the three sections in a short essay (whole paper should be 2 pages)

• Must include references page.

• ONLY USE THE SOURCES PROVIDED

Topic 1: Recessions and Business Activity

The Recession, Wal-Mart Style, Stephanie Rosenbloom, New York Times, June 6, 2009

Automakers Rebound as Buyers Go Big, Mike Ramsey, Wall St. Journal, January 3, 2014

The Great Recessions Effect on Entrepreneurship, Scott Shane, Economic Commentary, Federal Reserve Bank of Cleveland, March 24, 2011

Key Questions:

• How do recessions impact firms in general (consider how consumers are impacted and how this may translate to sales/revenue impacts on firms)?

• How might recessions benefit some firms? Consider the Wal-Mart example above. Can you think of companies or industries that may actually thrive during a recession?

• How might firms recover from recessions? Consider the auto industry above. Can you think of companies or industries that emerged from the recession with growth during the expansion?

• What is the impact of recessions on entrepreneurship? How does a recession impact entrepreneurs?

Topic 2: Fiscal Policy

Fiscal Policy, David Weil, The Concise Encyclopedia of Economics

U.S. Fiscal Policy: Reality and Outlook (2016), Fernando Martin, Economic Synopses No. 10

Key Questions:

• What is fiscal policy? How does the government use fiscal policy to influence the economy?

• What are the main expectations regarding U.S. fiscal policy according to the article by Fernando Martin?

• What are your thoughts on fiscal policy? What should the U.S. do going forward? Be sure to support your answer.

Topic 3: Monetary Policy

Federal Open Market Committee

GDP, Bureau of Economic Analysis

Employment Situation, Bureau of Labor and Statistics (see Employment Situation Summary Table A)

CPI, Bureau of Labor and Statistics (see the CPI news release summary)

Calendars, Federal Open Market Committee (see the Statement:PDF from the Oct. 31-Nov. 1 meeting)

Key Questions:

• How does the Federal Open Market Committee determine monetary policy?

• Provide a brief analysis of U.S. GDP (examine current GDP and recent changes).

• Provide a brief analysis of the U.S. employment situation (examine current employment data and recent changes).

• Provide a brief analysis of the CPI (examine current price levels and recent changes).

• Provide a brief summary of the Federal Reserve press release.

• If you were to provide a recommendation regarding monetary policy based on your analysis above, what would you suggest? Would you agree or disagree with the recent statements by the Federal Open Market Committee? Why?