Government Spending Article Reviews Samples For Students

NameCourseProfessorDate

Fiscal Policy – Aggregate Demand and Aggregate SupplyIntroduction
In managing the economy, the government may opt to carry out a fiscal policy. Fiscal policy comprises of expenditure and taxes and at times borrowing by the government. Provision of public goods is a government’s duty. A public good is a good that the private sector fails to provide either because of the fewer rewards derived from such investments or simply because of the high cost of investment in such projects (Creel 2009, pg. 141). It is thus a role of the government ensure that the citizen enjoy these goods and services. In financing ...

Introduction

Financial markets are subject to market factors including those that affect demand and supply for money. In that respect, this discussion refers to an article on US debt crisis to demonstrate the effect of such factors by analyzing the effect of US debt ceiling crisis that include foreign financial institutions hoarding funds and their refusal to accept US treasuries as collateral.

Body

- Financial market’s debt ceiling impact on interest rate and private investments without an agreement that US was no longer able to borrow.
With a debt ceiling but lack of an agreement that the US government could ...

I agree with by Paul Krugman that inflation is till considerably low. Therefore, Fed should worry more about unemployment than inflation. The level of inflation is relatively low than 2% therefore, Fed should concentrate on reducing unemployment. The economy is currently recovering and the aggregate demand is also increasing so Fed should continue to apply expansionary economic policies to help the economy to fully recover. This should be the way to go despite Phillips curve argument that unemployment decreases then inflation increases because little increase in inflation may be less harmful if it creates more employment opportunities by encouraging ...