Step 1 Research the following two events in the history of the United States, with a focus on the economic situations created during these historical periods:
Event 1: The Great Depression (1929 – 1933)
Event 2: The 1970’s Stagflation (1973 – 1982)
Research these historical events with a focus on the following three primary macroeconomic variables:
Gross Domestic Product (GDP)
Changes in the price level
Finally, research what fiscal and monetary policies were used during the two economic periods.
Step 2 – Write a 4 page paper that includes the following:
Summary of the historical events in terms of three unique macroeconomic concepts you have learned in this course. (1 page)
Analysis of what economic policies “worked” versus those that “failed” in each of these two events. (1 page)
Analysis of current economic conditions in the United States. (1 page)
What is the current state of the United States economy and what challenges does the country face?
How do you see this situation evolving over the next decade?
Using what you have learned in the historical analysis of previous economic periods, make a forward-looking recommendation regarding what policies yo believe would benefit the United States the most over the next decade. (1 page)
This section should include your thoughts about fiscal and monetary policy.
In addition to stating your policy recommendations, be sure to include an explanation of why you believe it is the “best path” from the standpoint of economic performance.
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