Economic advisers forum
5 paragraphs with at least one paragraph devoted to each question.
Background:
You have just been randomly selected to participate in a student focus group conducted by the Council of Economic Advisers for President Trump who has just completed 100 days in office. Your selection does not imply that you supported the President-elect in the election or that you agree with any of his views.
In preparation for the focus group meeting you are asked to prepare a written Discussion Board Post concerning the state of the aggregate economy and possible policy options that can be pursued by the new administration during the next 4 years. Your post should consist of your complete responses to the five questions posed below. At least one complete paragraph should be devoted to each question. Your posting should employ economic reasoning and apply the concepts that you have learned in Econ 2 Online.
Questions:
1. Describe the performance of the U.S. economy during President Obama's two terms in office as it relates to economic growth. What are the consequences if the new normal growth rate is significantly lower than the trend rate of growth that the U.S. economy experienced in the 20th century? Gather relevant economic statistics, such as the growth rate of real GDP, that have been introduced in this course to support your case. Much of the basic information that you need to complete this question should be available to you from your Economic Indicators Post. (The FRED website is a valuable resource for current economic statistics: https://fred.stlouisfed.org/)
2. Outline and explain the two most important and pressing long run macroeconomic isues/challenges that we currently face in the United States.
3. Evaluate the new President's proposals with regard to employment, trade, and taxation and their prospects for stimulating economic growth. Utilize the GDP equation (GDP=C+I+G+X-M) and the AD/AS framework in your evaluation.
4. Globalization has pulled hundreds of millions of people out of poverty in China and India and other countries in Asia. Global equality appears to be increasing through the "law of one price" and "comparative advantage" as discussed in Chapters 10 and 20. How should the convergence of global incomes be weighed against the structural changes that globalization has required in the United States and other developed economies? Should the Trump administration abandon plans to renegotiate the North American Free Trade Agreement (NAFTA) and other trade deals given the potential negative effects on incomes in other countries? Why or why not? Explain your reasoning utilizing the concepts introduced in Chapter 21 of your digital text.
5. The Council of Economic Advisers requests that you carefully explain at least two macro policy options at the conclusion of your post that the President can consider as part of the economic packages that he will submit to Congress during the coming year. What should be the appropriate mix of fiscal and monetary policy? Utilize the AD/AS model to illustrate the impact of these policy proposals. What is the projected impact of your proposals on the budget deficit?
Requirements:
- In total your post should be at least 5 paragraphs with at least one paragraph devoted to each question above.
- Apply at least four economic concepts (Key Terms) from Chapters 14, 15, 16, 17, 18, and 21 in your post.
- Make sure that you highlight or bold each Key Term that you apply, and include the chapter reference to the text in parenthesis.
- You should cite at least recent three online sources to support the positive statements (see Chapter 2) in your post. Your task is to find "authoritative" sources written by economists or serious economic journalists with macro content and then explain the information in your own words.
- Cite any and all outside sources, including blogs and websites, so that they can be found easily by other readers. The APA style of citation is recommended although the MLA & Chicago styles are acceptable also. Include a reference (works cited) list for all of your sources. The Saddleback College Library has resources that will help you cite your sources.