Macroeconimics Milestone 2
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Presentation Title
Your Name
ECO 202
Instructor Name
ECO 202
Choose a title for your presentation.
Include your name, the course name and the assignment name.
1
Fiscal Policy
This rubric element wants you to look at the policies in place at the start of your chosen decade.
You will need to provide details on the policies and examine how they were related to macroeconomic issues at the time. Your slide(s) on this will highlight the key points and your speaker notes will add the explanatory detail needed.
You may need to take a peak at what was happening in the years leading up to the start of your decade.
Your work here should include scholarly research which you can best find information on specific fiscal policies, search by President instead of by years – start with these sites:
Congressional Budget Office
White House website
National Bureau of Economic Research
ECO 202
Include Speaker’s notes.
2
Fiscal Policy Actions
This rubric element wants you to examine what the fiscal policy initiatives were going forward, to respond to the changing economic landscape.
You should specifically state what the intent of the actions were – for instance, it could be to decrease unemployment.
Then, use our macroeconomic principles and models (like the AD-AS model or Keynesian consumption function) to explain why the action would lead to the outcome desired by the government.
Keep the main points (and any use of graphs to show the economic models) on the slide and use the speaker notes to add full explanation.
Scholarly research is required here as well (this may overlap with research from the previous element, as appropriate).
ECO 202
Include Speaker’s notes.
3
Fiscal Policy Impact
After looking at what the government set out to do and why, you will now examine if it actually worked.
You will look at the macroeconomic data (which you already gathered in milestone one) to see if policy actions achieved their goals. For instance, if President Johnson’s “War on Poverty” aimed to reduce poverty in the U.S. and, in doing so, create a stronger economy. With less poverty, we should see increased consumption and higher growth rates.
Keep in mind that there may be times when the government misread the economy and implemented a policy that had unintended effects so its important to compare what was observed after the policy in the macroeconomic data to what the policy objectives were.
Also, consider how individual households and businesses were impacted by the policy decisions. For example, if taxes were lowered, did people spend more money? Did they save more money? Which group(s) of people received the tax cut?
ECO 202
Include Speaker’s notes.
4
References
Include references in APA style.
ECO 202
5
ECO 202 Milestone Two Guidelines and Rubric: Fiscal Policies
Continue your observation of the 10-year period selected for Milestone One, and research the fiscal policies implemented during those years.
Specifically, the following critical elements must be addressed:
Examine the fiscal policies in place at the start of your specific time period in relation to their effects on macroeconomic issues. For instance, consider
level of government spending, taxation, subsidies, unemployment benefits, and so on.
Analyze new fiscal policy actions undertaken by the U.S. government throughout the time period by describing their intended effects, using
macroeconomic principles to explain the actions.
Explain the impact of the new fiscal policy actions on individuals and businesses within the economy by integrating the macroeconomic data and
principles.
Guidelines for Submission: Your fiscal policies milestone should be 3–5 slides in PowerPoint, Prezi, Keynotes or PreZentit, not including title page and references.
Be sure to include speaker notes to accompany all of your responses. Your reference list slide needs to be in APA format.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Fiscal Policies
Examines the fiscal policies in
place at the start of the specific
time period in relation to their
effects on macroeconomic issues,
and provides information in
speaker notes
Examines the fiscal policies in
place at the start of the specific
time period, but does not relate
this to their effects on
macroeconomic issues, or does
not provide information in
speaker notes
Does not explain the fiscal
policies in place at the start of the
specific time period
30
Policy Actions
Analyzes new fiscal policy actions
undertaken by the U.S.
government throughout the time
period by describing their
intended effects, uses
macroeconomic principles to
explain the actions, and provides
information in speaker notes
Analyzes new fiscal policy actions
undertaken by the U.S.
government throughout the time
period, but does not describe
their intended effects, does not
use macroeconomic principles to
explain the actions, or does not
provide information in speaker
notes
Does not analyze new fiscal policy
actions undertaken by the U.S.
government throughout the time
period
30
Fiscal: Impact
Comprehensively explains the
impact of the new fiscal policy
actions on individuals and
businesses within the economy
by integrating the
macroeconomic data and
principles, and provides
information in speaker notes
Explains the impact of the new
fiscal policy actions on individuals
and businesses within the
economy, but is not
comprehensive, does not
integrate the macroeconomic
data and principles, or does not
provide information in speaker
notes
Does not explain the impact of
the new fiscal policy actions on
individuals and businesses within
the economy
30
Articulation of
Response
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Earned Total 100%
4-1 Final Project Milestone Two: Fiscal Policies
Assignment
For Milestone Two, you will research government fiscal policies as they relate to the 10-year historical period that you chose in Module One and present the information in 3–5 new slides for your presentation. Be sure to read the Milestone Two Guidelines and Rubric to ensure you are covering the critical elements of this assignment.
To assist you with your Milestone Two presentation, use the
PowerPoint template
provided. Submit the presentation here. This milestone will inform your final project.
For additional details, please refer to the
Milestone Two Guidelines and Rubric
document and the
Final Project Guidelines and Rubric
document.
Please follow the instructions in
this captioned video
in order to submit your PowerPoint as a PDF with notes so that your instructor can view your speaker notes.
ECO 202 Milestone Two Guidelines and Rubric: Fiscal Policies
Continue your observation of the 10-year period selected for Milestone One, and research the fiscal policies implemented during those years.
Specifically, the following critical elements must be addressed:
Examine the fiscal policies in place at the start of your specific time period in relation to their effects on macroeconomic issues. For instance, consider
level of government spending, taxation, subsidies, unemployment benefits, and so on.
Analyze new fiscal policy actions undertaken by the U.S. government throughout the time period by describing their intended effects, using
macroeconomic principles to explain the actions.
Explain the impact of the new fiscal policy actions on individuals and businesses within the economy by integrating the macroeconomic data and
principles.
Guidelines for Submission: Your fiscal policies milestone should be 3–5 slides in PowerPoint, Prezi, Keynotes or PreZentit, not including title page and references.
Be sure to include speaker notes to accompany all of your responses. Your reference list slide needs to be in APA format.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Fiscal Policies
Examines the fiscal policies in
place at the start of the specific
time period in relation to their
effects on macroeconomic issues,
and provides information in
speaker notes
Examines the fiscal policies in
place at the start of the specific
time period, but does not relate
this to their effects on
macroeconomic issues, or does
not provide information in
speaker notes
Does not explain the fiscal
policies in place at the start of the
specific time period
30
Policy Actions
Analyzes new fiscal policy actions
undertaken by the U.S.
government throughout the time
period by describing their
intended effects, uses
macroeconomic principles to
explain the actions, and provides
information in speaker notes
Analyzes new fiscal policy actions
undertaken by the U.S.
government throughout the time
period, but does not describe
their intended effects, does not
use macroeconomic principles to
explain the actions, or does not
provide information in speaker
notes
Does not analyze new fiscal policy
actions undertaken by the U.S.
government throughout the time
period
30
Fiscal: Impact
Comprehensively explains the
impact of the new fiscal policy
actions on individuals and
businesses within the economy
by integrating the
macroeconomic data and
principles, and provides
information in speaker notes
Explains the impact of the new
fiscal policy actions on individuals
and businesses within the
economy, but is not
comprehensive, does not
integrate the macroeconomic
data and principles, or does not
provide information in speaker
notes
Does not explain the impact of
the new fiscal policy actions on
individuals and businesses within
the economy
30
Articulation of
Response
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Earned Total 100%
Macroeconomic Data Report
China Brown
Southern New Hampshire University
Gross Domestic Product (GDP) and Growth From 2005-2014
Fluctuation in the U.S. GDP growth rate
U.S. GDP growth rate has alternate phases of increase and decrease
2008 had a GDP growth rate drastic decline
Both 2008 and 2009 have recession and depression, respectively
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GDP growth rate 3.4 2.7 1.8 -0.3 -2.8 2.5 1.6 2.2 1.7 2.4
The graph infers that there is a fluctuation in the GDP growth rate in US. There is an alternate phase of increase and decrease in the GDP growth rate. There is a drastic downfall in the GDP growth rate in the year 2008 followed by a greater reduction in year 2009 (Kalaš et al., 2017). Estimating the impact of taxes on the economic growth in the United States. Economic Themes, 55(4), 481-499.This is due to the phase of business cycle the economy passed through. There is a phase of recession followed by depression which the US economy passed through in the year 2008 and 2009.
2
Continued
At expansion phase, central bank give loans to commercial banks
At peaks, banks charge high interest rates
At recession, people get discouraged to borrow from banks
At depression, loss of economic and differential activity
At trough, central bank lowers interest rates
At recovery, commercial banks give loans at low interest
During the Recession period, the financial institutions such as banks become doubtful and indicate indifferent perspective towards giving loans to entrepreneurs to start new business ventures (Kalaš et al., 2017). As a result, the unemployment rate increases, resulting to low standard of living and finally thus low overall demand. The end result is low growth rate of the country’s GDP. Primarily, the stages of economic cycle are prosperity (expansion), peak, recession, depression, trough, and recovery.
3
Inflation and Unemployment In The U.S. From 2005 – 2014
The U.S. 10-year fluctuation in inflation
Monetary, fiscal, and price are inflation control measures
High population growth, high unemployment rates
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Inflation 3.42 2.54 4.08 0.09 2.72 1.5 2.96 1.74 1.5 0.76
The graph infers that the U.S. experienced fluctuation in inflation rate from 2005 to 2014, ten consecutive years. The population has increased in the past years because of immigrants looking for job opportunities. As a result, the demand of the goods and services increase leading to rise of commodity prices. This situation is demand pull inflation. During recession and recovery economic stages, the U.S. federal government attempted to control inflation by implementing control measures (Ciggiano et al., 2014). The U.S. government’s effective measures of monetary, fiscal, and price to control inflation. By controlling the cost of products and offering subsidies on the produced goods, the inflation gets controlled.
4
Unemployment in US from 2005 -2014
Low employment opportunities
2010 had the highest unemployment rate, 9%
High rate, high dependency level
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Rate (%) 5.3 4.7 4.6 5 7.8 9.8 9.1 8.3 8 6.6
From the table and graph, it is evident that the United States has experience increasing rate of unemployment from 2005-2014 (Ciggiano et al., 2014). The population has for those ten years increased due to immigrants coming into the United States to look for the jobs. Consequently, the available job opportunities cannot meet the high demand from increased population, thus many citizens remain unemployed and dependency rate increase.
5
Interest Rate Fluctuations
Increased investment and foreign trade
Increased supply and demand for credit
Increased GDP rate due employment opportunities
December 13, 2005 7.25
January 31, 2006 7.50
March 28, 2006 7.75
May 10, 2006 8.00
June 29, 2006 8.25
September 18, 2007 7.75
October 31, 2007 7.50
December 11, 2007 7.25
January 22, 2008 6.50
January 30, 2008 6.00
March 18, 2008 5.25
April 30, 2008 5.00
October 8, 2008 4.50
October 29, 2008 4.00
December 16, 2008 3.25
The federal government of the United States reduced interest rate to make it easy for entrepreneurs and other people have easy access of loans to improve and enhance their new entrepreneurial ventures and to generate new employment opportunities that lead to increased GDP (Ciggiano et al., 2014). As a result of this reduced interest rate, loans are available to most of people and thus the demand of population increases. This loan availability due to low interest rates in turn leads to demand pull inflation. Investment and foreign trade rate thus increase as there is easy availability of loans for promoting the manufacturing and the economy’s GDP.
6
References
Caggiano, G., Castelnuovo, E., & Groshenny, N. (2014). Uncertainty shocks and unemployment dynamics in US recessions. Journal of Monetary Economics, 67, 78-92.
Kalaš, B., Mirović, V., & Andrašić, J. (2017). Estimating the impact of taxes on the economic growth in the United States. Economic Themes, 55(4), 481-499.