Macroeconomic Policy

Select two topics from the following list of topics and write a 1,050-word analysis.  Use the bolded words/phrases shown below as first-level headings for your paper.  Your paper should evaluate two of the following: (only pick two) 

• Using active monetary and fiscal policy to promote economic growth/expansions and to reduce the duration and severity of recessions/contractions.  Provide real-world examples and statistics to support your contentions.  (Hint: See the National Bureau of Economic Research web page at http://www.nber.org/cycles/main.html)
• Using automatic stabilizers (such as unemployment insurance and a progressive income tax) to reduce the duration and severity of recessions/contractions.  Provide real-world examples and statistics to support your contentions.  (Hint: See the National Bureau of Economic Research web page at http://www.nber.org/cycles/main.html)
• Taking monetary policy decision-making authority from the Federal Reserve and placing that authority into the hands of Congress and the President.  Provide real-world examples and statistics to support your contentions.
• Reducing the Federal government's discretionary powers over the Federal budget by requiring a balanced Federal government budget. Provide real-world examples and statistics to support your contentions.
• Income Inequality.  Should the Federal government foster a more equal distribution of income?  If so, why?  If so, how?  If not, why not?  Provide real-world examples and statistics to support your contentions.
• Trade Restrictions and Jobs.  Should the Federal government pass trade restrictions or other measures to bring jobs that have been offshored back to the U.S.  Provide real-world examples and statistics to support your contentions.
• Zero-inflation target.  Provide real-world examples and statistics to support your contentions.
• Tax incentives for saving.  Provide real-world examples and statistics to support your contentions.

In your conclusion, your should: (1) discuss which positions you support, (2) defend your positions, and (3) discuss whether your positions on the two issues are consistent or contradictory. 

Cite a minimum of three peer-reviewed sources not including (Mankiw).  Appropriate sources could include the National Bureau of Economic Research (information on economic fluctuations), the Federal Reserve (information on monetary policy), the Congressional Budget Office (information on fiscal policy), and the Council of Economic Advisors (information on fiscal policy). 

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