Final Paper

Assignment: You will use no more than 2000 (~4 pages) words to reflect on the topic below. Your writing should reflect an economic thought process and utilize economic principle(s) to support your explanation. Emphasis is especially on developing a sound premise and logic and in logical evaluation of the costs and benefits of potential solutions or conclusions.

Topic
Choose one of the following:
1. Uncover the arguments behind the main competing views about the role of monetary and fiscal policy in the business cycle. I do not want you to pick a side and hail it as the answer; rather, I want you to evaluate the basis for each set of views by using the basic principles where applicable. Note how the priniciples inform each view and where you see contradiction or questions that remain in your mind. I especially hope that you address both pros AND cons of either position in your paper with a mind to the principles. To frame your discussion watch the videos here: http://econstories.tv/category/videos/ starting with "Fear the Boom and Bust" and then use other sources.

2. Discuss how and when income inequality becomes a problem with a focus on the relationship between inequality and the basic principles. It would be useful to think about the relationship between inequality and the economic principles, the different causes of inequality, and the role that government may play in either minimizing or furthering inequality. For example, when is inequality "good" or "bad" and how might the government’s role differ in either case? Or, what role are the economic principles playing or what role are they failing to play when inequality is "bad"? Use these two articles to frame your response: http://businessjournal.gallup.com/content/165716/bad-income-inequality.aspx and http://www.forbes.com/sites/hbsworkingknowledge/2013/08/19/how-income-inequality-affects-individual-behavior/.

Academic Resources:
You may discuss the topic with each other but once writing begins in earnest the work should be solely your own. A documentation statement, as always, is required.