To access readings, you must hold down the “ctrl” button on the keyboard + click with mouse to follow link to readings. (please let me know if you there are issues with accessing any of the readings) •
• The Everything Economics Book (eBook), Chs. 9, 16
• Wheelan, Naked Economics, Ch. 3, Government and the Economy (in Course Resources, E-Reserves)
• Practical Guide To Contemporary Economics (eBook), Ch. 11
After reading, please provide responses for each of the questions below. Please include an APA style citation and references for the responses to reflect the book, article or webpage you’re referring to in crafting your response. Also place each reference at the end of each response as opposed to at the end of the document.
1. Classical v. Keynesian Approaches
Fiscal policies are the actions of Congress on spending and taxing. (Note that this is different from monetary policy, which is the action taken by the Federal Reserve to change the money supply.)
The effects of the US recession are waning the jobless rate is falling. Some economists are recommending an end to any stimulus program, in which the government’s fiscal policy increases government spending and which increases demand and employment.
Explain and compare the Keynesian and classical points of view. Take either the classical or Keynesian position on a stimulus for our economy today (AS ALWAYS IN THIS CLASS, THIS POSITION NEED NOT BE YOUR ACTUAL OPINION.) Support your point of view using principles of Classical or Keynesian economics, as described by Mayer in Chapter 16 of “Everything Economics.”
2. What Role for Government?
In Chapter 3, Wheelan describes a number of ways in which the “government is your friend” in a well-functioning society and economy. List and explain two ways that, in your everyday lives, there is a need for an effective government role in an economy.
Explain how this government role does, or does not, solve a market failure such as an externality.
Instructions for accessing the online textbook:
Log onto school website at campus.umuc.edu
Username (case sensitive): NLAFORTUNE
UNDER “MY CLASSES” CLICK ON THE “GO TO CLASS” LINK TO THE LEFT OF “ECON IN THE INFORMATION AGE.”
Next CLICK ON “CONTENT” AT THE TOP OF THE PAGE
THEN SELECT COURCES ON THE BOTTOM LEFT SIDE OF PAGE
THEN CLICK ON “ereadings ON THE LEFT-HAND SIDE MIDWAY DOWN THE PAGE
NEXT CLICK ON THE LINK FOR “THE EVERYTHING ECONOMIES BOOK”
LAST CLICK ON “EPUB” FULL TEXT ON THE LEFT-HAND SIDE TO ACCESS THE ONLINE BOOK
Please let me know if there are issues with accessing any of the information.