Assignment 2: The Fiscal and Monetary Policy and Economic Fluctuations

Due Week 8 and worth 150 points

Write a three to four (3-4) page paper in which you:

1. Discuss the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment rate in your explanation.
2. Explain the changes in interest rates, inflation, and unemployment rates that your research yielded. Explain one reason for each of the changes in interest rates, inflation, and unemployment rates that you identified in Question 1.
3. Identify two (2) strategies based on fiscal and monetary policy that would encourage people to spend money in order to create economic growth.
4. Explain how the two (2) strategies that you identified in Question 3 could affect the unemployment, inflation, and interest rates.
5. Use at least three (3) quality resources in this assignment.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Analyze imperfectly competitive markets – monopoly, monopolistic competition, and oligopoly – to understand their profit-maximizing decisions.
• Explain the factors and mechanisms of growth.
• Explain how governments use monetary and fiscal policy to manage the economy.
• Use technology and information resources to research issues in principles of economics.
• Write clearly and concisely about principles of economics using proper writing mechanics.