Graduate (S) Business Administration 503

FUNDAMENTALS OF BUSINESS ECONOMICS

Summer 2011
 
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Deficit and Debt Question

In your opinion, how serious is the problem of the federal budget deficit and the national debt?  Incorporate a discussion of the issues surrounding deficits and the debt in your answer.  Also include in your answer a discussion of whether or not you think activist fiscal policy would be appropriate or effective in the current economic environment, and its impact on the deficit and the debt.  You should utilize the economic concepts presented in class, including graphical analysis, where appropriate.  Your answer can be typed or handwritten.

(20 pts.)