Fiscal Policy, Crowding out, Supply-side, Economics

ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120

Principles of Microeconomics, Fifth Canadian Edition by N. Gregory Mankiw, Ronald D. Kneebone, and Kenneth J. McKenzie Associate Vice President, Editorial Director: Evelyn Veitch Editor-in-Chief, Higher Education: Anne Williams

Author Wheelan writes, "Life is about trade-offs, and so is economics." Indeed, so is Naked Economics. This book promises to be a good introduction to economics for the layman. Throughout the book, the author uses easy-to-understand language and vivid examples to illustrate his points in strategic places maintaining a sense of lightness with the readers in reading the material. Here is a summary of each of the 12 Chapters of the book Naked Economics: Undressing the Dismal Science by Charles Wheelan.

The book is categorized into five sections: theological and ethical properties, basic assumptions of economics, macroeconomics, microeconomics, and international

The book, Common Sense Economics written by James D. Gwartney, Ricahrd L.Stroup, Dwight R. Lee, and Tawni Ferrarini, gives a simple insight for reader into the inner workings economics in a common sense terms. The main point of the book is that to have economic success comes from low interference from the government, the motivation of individuals, and competitive markets.

Mankiw, N. G. R. E. G. O. R. Y. (2014). Principles of macroeconomics. Cengage Learning.

Answer four (4) questions. Maximum of 400 words for each question. These are questions which require short answers to a series of issues relating to economic principles and concepts.

READ: Naked Economics: Undressing the Dismal Science, Charles Wheeland, W.W. Norton, 2003. Completely- cover to cover.

READ: Naked Economics: Undressing the Dismal Science, Charles Wheeland, W.W. Norton, 2003. Completely- cover to cover.

1. Define any key terms that you feel are important in answering the following question as they are defined in the textbook and explain, in your own words what those definitions mean, and then thoroughly analyze each of the following changes in the market for loanable funds to answer the these questions Use the diagrams below, resizing them as necessary, to illustrate your analysis in explaining what happens to private savings, private investment spending, and the rate of interest if the following events occur. Assume the economy is closed (no transactions are made with foreign countries).

The Canadian government is, in my opinion, doing very well. The government has succeeded in being able to ensure a comfortable life for many citizens within the country, and continues putting effort into enhancing the lives of many. However, there are many problems that the government and economy still faces, and many issues that must be improved and dealt with in order to continue growing the economy, and in order to ensure that people can remain comfortable and happy. One issue in particular that the Canadian government is faced with is that the economy as a whole struggles with their business cycle when they are experiencing recessionary or inflationary gap problems. (p147) Eveline Adomait and Richard Maranta’s Dinner Party Economics

Theories about how the economy works and what will happen in the economy where there is monetary policy or fiscal policy intervention are appropriate in assisting policy-makers understand the possible implications of decisions they make or are under consideration. However, they are rarely complete models and often outcomes cannot be predicted. Reintroduction of a theory suggests that new evidence in support of the theory has been reported.

* In the first paragraph, discuss the relevant economic theory of your topic (your textbook is a good source for this paragraph).

Suppose a small closed economy has GDP of $5 billion, consumption of $3 billion, and government expenditures of $1 billion. Then investment and national saving are both $1 billion.

* McConnell, C., Brue, S., & Flynn, S. (2012). Macroeconomics: Principles, Problems and Policies, Nineteenth Edition. McGraw-Hill Companies, Inc.