Posted: September 13th, 2017

CDAE 253 Paper;book Stress Test, former Treasury Secretary Timothy Geithner states that “the financial system repaid our assistance and tax payers turned a profit”

CDAE 253 Paper;book Stress Test, former Treasury Secretary Timothy Geithner states that “the financial system repaid our assistance and tax payers turned a profit”

1.    On p. 15 of his book Stress Test, former Treasury Secretary Timothy Geithner states that “the financial system repaid our assistance and tax payers turned a profit”. Reconcile this statement with your own beliefs and experiences with the current economy (post-Recession).
2.    In the “doomsday scenario” of American default on its financial obligations, show what is meant by doomsday. How did the effect of the debt crisis in developing countries’ economies compare to the effect of debt on the US economy?
3.    Demonstrate the impact of an increasing GDP. Is it possible that people could be worse off despite an increasing GDP? If so, show this in economic terms.
4.    Neoclassical economists believe that the economy is self-correcting. Keynesians believe that government intervention is necessary. Portray both arguments in graphical terms and present your hypothesis of how the economy works.
5.    Investigate the economic premise of the Occupy Wall St. movement and describe it. Assess what the likely outcomes would be if one or several of its positions were made into policy.
6.    Discuss the post-secondary education system in the United States and how it might or might not support the idea of convergence of income. Use economic principles to support your case.
7.    In the Darwin Economy, Frank presents the idea of natural selection as an alternative to the “invisible hand.”  Use examples and economic principles to illustrate both concepts and present your hypothesis for which concept best describes the way the economy works.
8.    Several experts posit that “context matters.” Present at least 2 examples of how context has mattered in developing economic theory. Present your hypothesis of what contextual factors will be important for economists to consider in future.
9.    On p.3 of Rethinking Macroeconomics for Sustainability, Nadal states that “poor countries and especially the poor within all countries, will bear a heavy burden of adjustment. Is this always true, or is it unique to the most recent financial crisis? Explain this in economics terms.
10.    Vermont has recently passed a law to require labeling of GMO ingredients in food products. Many businesses and business leaders oppose this law, saying that it will harm the consumer in the form of higher prices. Supporters of the law say that it will help consumers by providing more information about products in the marketplace. What do you believe? Use macroeconomic principles and an example to support your point of view.
11.    Explain the 2008 financial crisis and US policy responses using macro-economic principles. Has the cause of this crisis been solved? What, if any, changes to the US macro-economic system have been made? What changes are proposed to avoid another financial crisis?