Topic: Essay on Economics
2) Explain the process of multiplier effects of Government Sprnding, based on Keynesian Fiscal policy. (1 point)
3) When economy falls into a recession, what kind of fiscal policy is needed? Give a specific tool of fiscal policy.(1 point)
4)Discuss the long run effects of “Crowding out” due to a short run expansionary fiscal Policy.(1 point)
5) if MPC becomes bigger, what happened to multiplier of Government Spending. Explain the process by using Multiplier formula. (1 point)
6) Does Tax revenue increase or decrease during Recession? explain by using Automatic(built in) stabilizer such as progressive income tax.(1 point)
7) Treasure Hunt: a) Go to www.cengage.com/sso (Links to an external site.)Links to an external site. web site. At Bookshelf of Arnold economics of 11th edition, click Economics Course Mate of Economics(11th ed) by Roger A Arnold . Then, click “select chapter” for Ch 11 and try Ch11: Fiscal policy to get access to ” Video Office hours ” left menu bar. Summarize the contents of “Video Office hours”. (2 points)
b) Summarize the contents of “Working with Diagrams” of Ch 8 , 9 , 10 and 11 at www.cengage.com/sso (Links to an external site.)Links to an external site. . (2 points)
