Activity 4.3 Fiscal vs. Monetary Policy

Social studies is full of debates. Historians argue over the legacy of Christopher Columbus, the primary cause of the US Civil War, and even who killed President Kennedy. Political scientists interpret the US Constitution differently. Psychologists disagree on how human behavior is learned. Anthropologists have come up with varying accounts of where man first lived. Politicians, well...., let's just say there are lots of things they disagree on and leave it at that.

The study of economics also includes many debates, and primary among them concerns what role the government should take in attempting to ensure a stable, productive economy. Some argue that it is through fiscal policy that the government can best maintain a viable economy. Others say that monetary policy decisions have a greater impact on the well-being of the economy. In reality, both fiscal and monetary policies are utilized by our government. So what is this debate all about? What is the difference between fiscal policy and monetary policy? That is what you will be researching.

Activity 4.3 Requirements

A) Create a 2-3 page summary (double-spaced, 10 or 12 point letter size) in which you provide an explanation of the difference between fiscal policy and monetary policy. This summary must be in your own words. Provide specific examples of how the government utilizes each type of policy in an attempt to maintain a stable, productive economy. Your explanation of fiscal policy and monetary policy should provide insight into why some economists believe one is more effective than the other. Your ability to relate this debate to historical events will certainly earn you higher marks on this assignment.

B) Upon the conclusion of your written summary, provide the proper definitions of the following terms: interest rates, stagflation, Federal Reserve Board, depression, and recession.

You may count the defining of these terms as part of the 2-3 page summary that you are to create. If you need to go beyond 3 pages to define these terms, you may.

C) Include a separate bibliography page in which you properly cite all the resources that you used to help you with this assignment.

You will find the following resources to be most helpful in completing this assignment. Feel free to use other resources that you may find on your own.

(http://themint.org/)	The Mint website provides excellent economics information such as how to spend your money wisely and develop a personal budget. Games, quizzes, and an online Economics Dictionary are also available here.
(http://www.homeworkcentral.com/)	The Homework Central website provides assistance in all curriculum areas. Click on the "Economics and Business" entry to gain access to a variety resources that can assist you with this activity.
Outline of the American Economy	This link will connect you to an online text version that provides information about fiscal and monetary policy. The reading is somewhat on a high level but you should be able to extract some valuable information. Once you have accessed this site, click on Chapter 7 - Monetary and Fiscal Policy.

GRADING RUBRIC *Writing Assessment*
Grade	Score	Description
A	6	A paper scored 6 tightly focuses on the topic; has a well-planned organizational pattern; has substantial development of supporting ideas; and has few if any conventional errors in sentence structure, mechanics, usage, punctuation, and spelling.
B+, A-	5	A paper scored 5 tightly focuses on the topic; has a well-planned organization pattern; has ample development of supporting ideas; and generally follows the conventions of sentence structure, mechanics, usage, punctuation, and spelling.
B	4	A paper scored 4 focuses on the topic but may contain extraneous or loosely related information; has an organizational pattern; has consistent but sometimes nonspecific development of supporting ideas; and generally follows the conventions of sentence structure, mechanics, usage, punctuation, and spelling.
C	3	A paper scored 3 focuses on the topic but may contain extraneous or loosely related information; exhibits evidence of an organizational pattern; has uneven and nonspecific development of supporting ideas; and generally follows the conventions of sentence structure, mechanics, usage, punctuation, and spelling.
Unacceptable Revision Required	2	A paper scored 2 addresses the topic but may contain extraneous or loosely related information; exhibits some evidence of an organizational pattern; has erratic and nonspecific development of supporting ideas; and may contain errors in the conventions of sentence structure, mechanics, usage, punctuation, but commonly used words are usually spelled correctly.
Unacceptable Revision Required	1	A paper scored 1 addresses the topic but may lose focus by including extraneous or loosely related information; exhibits little evidence of an organizational pattern; has little if any development of supporting ideas; and may contain many errors in the basic conventions of sentence structure, mechanics, usage, punctuation, and spelling.


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