ECON202 week 4 Research Project 1 - The National Debt

ECON202 week 4 Research Project 1 - The National Debt. During the Great Recession, like any other economic downturn, unemployment rises, aggregate income declines, and there is a major decline in tax collections. At the same time, increased unemployment causes spending on safety-net programs to rise. In response to these situations, government appears to have only two options (neither good) to stabilize the national economy: either put in place severe austerity measures (cut spending), or increase borrowing. Of course, it is very difficult to defend cuts in the federal government programs and especially programs geared to sustain a minimum standard of living for the poor, but increased borrowing has major adverse impacts on the national economy. Write an essay analyzing · The different theoretical views about the national debt. · The long-run costs of a high national debt. · The costs of eliminating the budget deficit through: (1) tax increases, and/or (2) cuts in spending (e. g. by decreasing transfer payments such as Social Security, Medicare and Medicaid payments and/or cuts in discretionary spending on things such as as defense spending. Complete this essay in a Microsoft Word document. Make sure to format your paper using the APA style. The paper will automatically be submitted it to "TurnItIn" for a plagiarism review. Please note that a minimum of 700 words is required. Research Project 1: The National Debt https://www.studyhelpus.com/econ202-week-4-research-project-1-the-national-debt/