Studybay uses cookies to ensure that we give you the best experience on our website. By continuing to use Studybay you accept our use of cookies view more on our Cookie Policy
How can I earn money with StudyBay Top writers
Order Assignment
This order has already been completed on Studybay
On Studybay you can order your academic assignment from one of our 45000 professional writers. Hire your writer directly, without overpaying for agencies and affiliates! Check price for your assignment
18 bids submitted. Essay Example.

Macroeconomics Essay: Deficit Spending

Assignment 1: Deficit Spending During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spending on safety net programs rise. So, there are not too many good options available to resort the health of the national economy. It will be very difficult to defend cuts in the federal government programs and especially the programs geared to sustain the minimum of the standard of living for the recent “poor.” So, government needs to increase its borrowing. Deficit spending refers to government spending exceeding what it brings in federal income and corporate taxes during a certain period. Deficit spending hence increases government debt. Most economists accept that deficit spending is desirable and necessary as part of countercyclical fiscal policy. In such a case, government increases its borrowing and hence its deficit to compensate for the shortfall in aggregate demand. This is derived from Keynesian economics, and has been the mainstream economics view. Following John Maynard Keynes, many economists recommend deficit spending to moderate or end a recession, especially a severe one. When the economy has high unemployment, an increase in government purchases creates a market for business output, creating income and encouraging increases in consumer spending, which creates further increases in the demand for business output. (This is the multiplier effect). This raises the real gross domestic product (GDP) and the level of employment and lowers the unemployment rate. Government borrowing under such circumstances increases the demand for borrowing and thus pushes interest rates up. Rising interest rates can "crowd out" (discourage) fixed private investment spending, canceling out some of the demand stimulus arising from the deficit Write an essay analyzing the advantages and disadvantages of deficit spending and the effects of federal government borrowing on the economy i.e., the “crowding out” effect. Complete this essay in a Microsoft Word document, and in APA format. Note your submission will automatically be submitted through "TurnItIn" for plagiarism review. Please note that a minimum of 700 words for your essay is required. Your paper should be structured as follows 1. Cover page with a running head 2. Introduction: What is deficit spending and how does it work. 2.1. Advantages 2.2. Disadvantages 3. Crowding-out Effect 4. Conclusions: Do you believe that deficit spending helps or hinders short-term and long-term economic growth? 5. References
Assignment 1: Deficit Spending During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spending on safety net programs rise. So, there are not too many good options available to resort the health of the national economy.
Assignment ID
34680
Discipline
Type
CREATED ON
12 July 2016
COMPLETED ON
13 July 2016
Price
$30
This order has already been completed on Studybay
On Studybay you can order your academic assignment from one of our 45000 professional writers. Hire your writer directly, without overpaying for agencies and affiliates!
Check price for your Essay
Reaction papaer
Essay, Economics
Price 30 $
Fiscal and the monetary policies
Essay, Economics
Price 30 $
political economy home nation.
Essay, Economics
Price 30 $
Competitive advantages week 3
Essay, Economics
Price 30 $
Economics response paper
Essay, Economics
Price 30 $
Economics of ksa
Essay, Economics
Price 30 $
Writer determine
Essay, Economics
Price 30 $
Country's economic and trade
Essay, Economics
Price 30 $
Studybay assignment progress timeline
Studybay is a freelance platform where you can order a Macroeconomics Essay: Deficit Spending paper, written from scratch by professors and tutors.
12 July 2016
User posted an order for Economics
12 July 2016
18 writers responded and offered to do the job for a price between $10 and $20
12 July 2016
User contacted writer
12 July 2016
User hired writer
13 July 2016
Writer completed order Macroeconomics Essay: Deficit Spending for 1 day, meeting the deadline
13 July 2016
User accepted the job right away and completed the payment
13 July 2016
User left a positive review
Contrasts WITHIN THE Vinland Sagas Background Essay
History The Vinland Sagas comprises of two distinct sagas, the saga of "The Greenlanders" and "Eirik the Red's Saga". The sagas contain the first...
Integrated Marketing and sales communications used by HP
Marketing This research study analyses the marketing communication theories modified by Hp as it advanced to being the world's number 1 pc manufacturer...
Jean Jacques Rousseau ALONG WITH THE Social Contract Philosophy Essay
Philosophy Rousseaus principal target on paper The Social Deal is to regulate how freedom may be possible in civil contemporary society. In the talk...
The Actions Of Personas In Abner Snopes
English Literature Faulkner uses selective diction and the activities of characters to present Abner Snopes as a sympathetic persona. Abner is static,...
Other assignments in this discipline
Business report
Reports, Economics
Price 30 $.
International political economy
Essay, Economics
Price 30 $.
Newspaper article
Article, Economics
Price 30 $.
Write a memo based on the provided reading
Other types, Economics
Price 40 $.
Econ gov. intervention
Essay, Economics
Price 30 $.
Econ 2 : writing assignment
Coursework, Economics
Price 40 $.
Video assignments
Coursework, Economics
Price 40 $.
Respond/reflect
Other types, Economics
Price 40 $.
Soft-argument paper
Essay, Economics
Price 30 $.