Assignment:
Write pragraphs on the followings:
1. This chapter discussed, in detail, the "how" of national income accounting. Yet clearly not "everything" is counted. In 2008/2009, the United States was in a recession, and reported GDP was shrinking.
Knowing not everything is counted, do you think a recession could "look" worse than what it is, due to how GDP is calculated?
write one argument paragraph about that a recession could look worse than it really is.
2. In the 1930s, the United States found itself in the grip of the Great Depression. During this time period, a weather phenomenon called the Dust Bowl also occurred. Conduct an Internet search on The Dust Bowl to discover more about it.
How do you think the Dust Bowl and the economic downturn impacted each other? Why? Do you think another Dust Bowl could generate a depression?
write one argument paragraph about that another Dust Bowl would not generate a depression.
3. Some politicians have suggest that the United States enact a constitutional amendment requiring that the federal government balance its budget annually.
Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession
write one argument paragraph that the government should NOT enact such a practice.
The length of the three paragraphs should be one page and half.