PART ONE:
The attached includes 10 questions from the content material you have covered in Chapters 3 and 5 (weeks 3 and 4). Research each of these questions in your textbook and online as instructed in each question. Also, give examples as you are prompted in each question. There is no word count for this project. Before submitting this assignment, read it over to yourself to check for grammar, sentence structure, and completeness. A word to the wise, this is a two-week project and in-depth answers are expected. Use your time wisely to show your insights into each question after carefully reviewing the reference materials.
(NO WORD COUNT)
PART TWO:
Find an operations-based company you are familiar with and research it’s use of suppliers. First, take a look at what companies have already been reported on and try not to duplicate what someone else has analyzed. Then research whether your chosen company makes any of it’s own products, or does it outsource all or most of it’s components and finished products. Where does it source, internationally or domestically? See if you can get a macro-picture to report to the class regarding this company’s products and how it uses a supply chain to source components and/or finished products. Product manufacturing companies you are familiar with are a good place to start, however, it’s also interesting to find a company that maybe no one has heard much about. Once you have found a company you are interested in reporting on for this Discussion, begin by describing this company’s products and then their supply chain network. Finally, see if you can identify the primary risks this company has with it’s sourcing.
(200 WORDS)
PART THREE:
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 and analyze 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 in a Microsoft Word document, and in APA format. Note your submission will automatically be submitted through “TurnItIn” for plagiarism review.
should be structured as follows
1. Cover 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
(700 WORDS)
PART FOUR:
Classical economists belief that prices and quantities adjust to the changes in the forces of supply and demand and that the economy produces its potential output in the long run. On the contrary, Keynesian economists believe because of price and wage rigidities the economy’s equilibrium output in the long run may be less than its potential output. What is price-wage rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government’s involvement in the markets? Why? Why not?
(200 WORDS)
