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.
Using the 10 Year period of economic history between 1970- 1980 (the period of the great inflation). Use the observation of this 10-year period 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.Directions: Answer each of the questions below.
1. How does an increase in unemployment negatively affect our government?
2. When a business finds it necessary to layoff some employees (due to slowing sales), what positive effects might this have for the business?
3. Mr. Smith was disabled in a car accident in 1995 and has not been able to work since. Is Mr. Smith included in the unemployment statistics? Why or why not?
4. Explain how dishonest workers and discouraged workers affect employment statistics.Because of the decline in the U.S. birth rate, baby clothes manufacturers are laying off workers.
b. Bill decided to relocate to Texas. He quit his present job and found a new job in Texas three weeks later.
c. As interest rates continue to rise, the sale of new homes decreases. This has caused an increase of unemployed construction workers.
d. As the fall harvest ends, agriculture unemployment increases.
e. Janet worked in the drive-up window of a bank. The bank has installed an automated teller machine and has closed the drive-up window. Janet’s job no longer exists, so she has to start looking for another job.
f. The state of Missouri has enacted a law stating that no one under the age of 21 can work in an establishment that sells liquor. Mark, an 18-year-old, was working as a waiter in a restaurant that sells alcoholic beverages. He can no longer work at the restaurant.