Instructions:
We have learned about Fiscal and Monetary Policy. Economic conditions in large economies can be extremely complicated. One of the more complicated issues is Stagflation. For this assignment you will write a short term paper about stagflation following the prompts on the attached document. Your assignment is to write a:
1) Two page term paper,
2) Single spaced,
3) New Times Roman 12 font,
4) I expect a cover page and works cited (utilize whatever style you are used to, but be sure to give proper citations)
5) I encourage you to use scholar.google.com which provides a resource of scholarly articles that have been peer-reviewed. This will hopefully prevent you from relying on unvetted websites, and Wikipedia.
6) Write with good grammar and all quotes footnoted/endnoted/cited,
7) The goal of this paper is to speak to the uncommon problem of Stagflation. Stagflation occurs when there is high inflation and high unemployment. I want you to introduce and identify the problem, figure out how you as a economic policy maker would use different policies, fiscal and monetary, to fix the economies described in the attached document. Each proposed economy is experiencing symptoms of stagflation. Be sure to follow and address the questions on the attached document that relate to the scenario below.
Once you turn in your paper, Canvas will indicate you have a ZERO. Disregard this grade as no one turning in a paper they put effort into will get a zero, it simply indicates you have turned in the paper. When I grade the paper, you will then receive your grade.
Scenario: Suppose the following stagflations are experienced in three fictitious countries in 2020, call them ?country A,? ?country B,? and ?country C,? but with the following specifics:
Country A: Inflation increased from 10% to 20%; unemployment increased from 2% to 3%
Country B: Inflation increased from 2% to 3%; unemployment increased from 10% to 20%
Country C: Inflation increased from 8% to 14%; unemployment increased from 8% to 14%
What policies do you use to correct the problem for each location?
