Discussion responses minimum of 200 words long with references included. Choose 2 topics from the 3 topics below.
TOPIC 1: There are pros and cons if policymakers use monetary and fiscal policy to stabilize the economy. Explain the main arguments in favor of economic stabilization. Explain why policy lags could make stabilization policies counterproductive.
TOPIC 2: One of the widely debated issues in macroeconomic policy is related to government budget, which involves government spending and taxes. Should the government balance its budget? If you think it should, what steps do you suggest that it take to balance its budget? If you wished to reduce the budget deficit, how would you advocate that be accomplished?
TOPIC 3: There is a general consensus that the current tax laws in the USA are not effective (efficient). However, there is a debate on how the tax laws should be reformed. Should the tax laws be reformed to encourage saving? Is the tax law the major impediment to increasing private saving in the economy?