Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.

Week 8: Week 8 – Assignment 2 Assignment 2 — Week 8 Assignment #2: This assignment supports the lesson objectives Assignment Overview This assignment requires you to write a report that answers questions that explore economic analysis and modern problems and the economic way of thinking. Deliverables You will post your report document to a dropbox. Assignment Details Assignment # 2 – Markets and the Economy You are to write a four to eight (4-8) page report that answers the following: 1. Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. 2. Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium. 3. Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system. 4. Although GDP per capita is the most commonly used measure of a country’s success, many economists believe it does not give an accurate measure of a nation’s economic well-being. Some studies have concluded that that GDP is not the best measure of well-being, and although it may be the best available on a timely basis, other factors need to be considered in aIDition to GDP to give a more accurate picture of economic well-being and the disparity of well-being between nations. Clearly identify at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation. The format of the report is to be as follows: o Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format. o Use headers for each of the criteria, followed by your response. o In aIDition to the 4-8 pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date. NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills. The assignment will be graded using the following rubric: Outcomes Assessed · Describe the impact of public goods and externalities on the functioning of an economy. · Use the dynamics of the labor market to anticipate wage rate and labor supply changes. · Analysis of the key macroeconomic phenomena: GDP, unemployment, inflation. · Use technology and information resources to research issues in economics. Grading Rubric for Assignment # 2 – Markets and the Economy Criteria 0 Unacceptable 20 Developing 30 Competent 40 Exemplary 1. Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. Did not complete the assignment or did not explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy; omitted key information and/or included irrelevant information. Completed with less than 60% accuracy, thoroughness, and logic. Explained partially how an increased federal budget deficit resulting from a recession can actually help stabilize an economy; omitted some key information. Completed with 60-79% accuracy, thoroughness, and logic. Explained sufficiently how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. Completed with 80-89% accuracy, thoroughness, and logic. Explained fully how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. Completed with 90-100% accuracy, thoroughness, and logic. 2. Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium. Did not complete the assignment or did not describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium; omitted key information and/or included irrelevant information. Completed with less than 60% accuracy, thoroughness, and logic. Described partially how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium; omitted some key information. Completed with 60-79% accuracy, thoroughness, and logic. Described sufficiently how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium. Completed with 80-89% accuracy, thoroughness, and logic. Described fully how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium. Completed with 90-100% accuracy, thoroughness, and logic. 3. Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system. Did not complete the assignment or did not explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system; omitted key information and/or included irrelevant information. Completed with less than 60% accuracy, thoroughness, and logic. Explained partially why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system; omitted some key information. Completed with 60-79% accuracy, thoroughness, and logic. Explained sufficiently why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system. Completed with 80-89% accuracy, thoroughness, and logic. Explained fully why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system. Completed with 90-100% accuracy, thoroughness, and logic. 4. Identify at least three such factors that, in your view, should be included in the GDP calculations; then explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation. Did not complete the assignment or did not identify at least three such factors that, in your view, should be included in the GDP calculations; may or may not have explained and illustrated how they will help to improve the GDP as a tool for measuring the well-being of a nation; omitted key information and/or included irrelevant information. Completed with less than 60% accuracy, thoroughness, and logic. Identified one to three such factors that, in your view, should be included in the GDP calculations; then partially explained and illustrated how they will help to improve the GDP as a tool for measuring the well-being of a nation; omitted some key information. Completed with 60-79% accuracy, thoroughness, and logic. Identified three such factors that, in your view, should be included in the GDP calculations; then sufficiently explained and illustrated how they will help to improve the GDP as a tool for measuring the well-being of a nation. Completed with 80-89% accuracy, thoroughness, and logic. Identified three or more such factors that, in your view, should be included in the GDP calculations; then fully explained and illustrated how they will help to improve the GDP as a tool for measuring the well-being of a nation. Completed with 90-100% accuracy, thoroughness, and logic. 5. Clarity Did not complete the assignment or explanations are unclear and not organized. (Major issues) Explanations generally unclear and not well organized. (Many issues) Explanations generally clear and/or organized. (Minor issues) Explanations very clear and well organized. (AIDed helpful details.) 6. Writing – Grammar, sentence structure, paragraph structure, spelling, punctuation, APA usage. Did not complete the assignment or had 8 or more different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Major issues) Had 6 – 7 different errors in grammar, sentence structure, paragraph struct
ure, spelling, punctuation or APA usage. (Many issues) Had 4 – 5 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Minor issues) Had 0 – 3 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage.