Explain why the presence of the built-in-stabilizer is important to managing the macro economy.
What can you learn from the past 60 years of the U.S Show more The Business Cycle and Built in stabilizers. a. What can you learn from the past 60 years of the U.S. Business Cycle? i.Discuss what the business cycle represents. ii. What can it tell you about the status of our economy today and into the future? b. List and explain the 4 phases of the business cycle including the characteristics of each. Be thorough! i. You would want to list the 4 phases of the business cycle (in the order that they typically occur) and explain the characteristics of each . Please dont include Depression as one of them. ii. Include in your discussion how each phase of the business cycle might impact your life. c. Explain 3 causes of change in the direction of the business cycle. Be thorough! d. Explain in detail the built in stabilizer and how it works to reduce the impacts of inflation and recession. i. You would want to : 1.Note that this falls under non-discretionary fiscal policy 2.Explain the difference between discretionary and non-discretionary fiscal policy 3.Discuss the key relationships that supports the built in stabilizer 4.Explain thoroughly how it works to reduce inflation 5.Explain thoroughly how it works to reduce recession 6.Explain why the presence of the built-in-stabilizer is important to managing the macro economy. 7.Draw pictures if necessary Show less
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