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Tax collections and government spending to achieve a non inflationary level of employment – Discussion

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1. Expansionary Fiscal Policy relies on changes in tax collections and government spending to achieve a non inflationary level of employment. Given this definition what actions and projected consequences is President Trump trying to enact to realize this goal. Include in your discussion economic conditions that existed prior to the 2016 election, i.e. the mortgage/real estate crisis, employment & unemployment, provisions President Obama used to offset the economic conditions, projected benefits vs projected detriments to the economy. Be sure to include your conclusion on whether you believe that President Trump views are correct or not and why you feel this way. (Discussion – 1 1/2 page minimum)

Study Question 2

What are the four phases of the business cycle?
How long do business cycles last?
Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?

Study Question 3

Why is it difficult to distinguish between frictional, structural, and cyclical unemployment?
Why is unemployment an economic problem?
What are the consequences of a negative GDP gap?
What are the non economic effects of unemployment?

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