Describe the applied macroeconomic theory the article refers to.
Locate an article written within the past year from one of the following sources (Harvard Business Review, Forbes, The Financial Times, The Economist, Bloomberg Businessweek, or the World Street Journal) that discusses an aspect of applied macroeconomic theory being covered throughout the specific week (e.g., Week 3 -> Macroeconomic Perspectives (GDP), Week 5 -> Aggregate Demand/Aggregate Supply/Aggregate Equilibrium, etc.). Note, please utilize the GMC Library Services to supplement your article search process at http://gmcga.libguides.com/
For this Week 5 Journal Assessment, your applied theory concepts that can be used in the article search include the following below.
Aggregate Demand
Aggregate Supply
Aggregate Equilibrium
Keynesian Theory
Consumer Spending
Tax Reform/Policy
The Journal Assessment will include a detailed summary of the article, your reaction to the article, your answers to the below questions, and a complete citation of the source (or sources if you choose to use additional sources to back up your point of view with factual evidence).
Describe the applied macroeconomic theory the article refers to.
What is the author’s main point?
Who is affected by the situation described in the article, and how?
How is the information in the article relevant to you and concepts being covered in this course?
Do you agree with the author’s opinion or with the actions described in the article? Why or why not?
Your Journal Assessment is to be a minimum of 1 complete page in length. Going over the minimum page length requirement is acceptable; however, I am not looking for a 3+ page article summary.
Part Two
explain the Keynesian view to enacting tighter federal restrictions on mortgage lending practices including requiring higher down payment levels and increasing the minimum credit score required to approve housing loans. A major contributor to the 2008-2009 Great Recession was the housing market “bust” that was characterized by rising home values that caused the AD curve to shift to the right as more household saw an increase in wealth due to the appreciation. Explain based on your readings and supplementary resources, how would such a shift in regulatory policy impact the housing market and pricing? For support you can utilize information from the National Association of Realtors at the links below.
Answer preview Describe the applied macroeconomic theory the article refers to.
