1. Each paper is to be an analysis on the recent economic events or economic reports from the supplemental resources or references. The focus of this assignment is to relate and analyze current events to basic principles of macroeconomics covered in this course. It is not acceptable to just regurgitate statistics. The paper should indicate that you have a clear understanding of the theory learned in class and its application/operation in the outside world.
2. Option If you come upon an interesting subject relating to your work or any other non economic publication that can be explained in light of the theories learned in this class, you may be able to substitute this as the basis article. Discuss the article and ideas with your instructor prior to embarking on this option.
3. Use standard file format (.doc or .docx) for all deliverables (topic, draft, and final paper). Standard margins apply. Papers should contain proper documentation of the article(s) or other references used. If direct quotes are used (not contained in the article), appropriate footnotes, endnotes, or parenthetical citations must accompany the quotes. Since a part of your paper will come from published sources, Internet references, etc., there should be sufficient evidence of where the information for your paper originated. Paper length should be a few pages short enough to qualify as a commentary but long enough to adequately address the subject. Typically, six to eight double spaced pages are sufficient.
Global financial crisis that occurred during 2008-09 originated in the United States and very soon it extended to the other countries. This global financial crisis led to the insolvency of many banks and Financial Institutions world over and particularly in the US. As people lost confidence in the financial markets, government had to step in and take expansionary actions to pull out the economy from recession. This paper first discusses the global financial crisis and its reasons. The literature review section discusses the need for governmental spending. The third section discusses about how government spending can increase the aggregate demand and move the economy towards full employment output. And the final section provided recommendation and conclusion.
Global Financial Crisis:
Reasons behind the global financial crisis included the collapse of the financial markets in the US which led to the credit crisis. This problem started in the year 2001 where the Federal Reserve of America which is the central bank lowered the interest to 1% in order to overcome the negative effect of September 11 incident. This along with the influx of money from Middle East and China resulted in great abundance in the country. Financial investors in the country looked for solid return on their Investments that were beyond the interest...
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