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Economic Analysis 3

09 Mar

In this assessment, you will gain greater understanding of tax systems in relation to economic stability, the multiplier effect, and how net exports affect GDP.

Requirements

There are three parts to this assessment. Be sure you have completed all three parts before submitting.

Part 1
  • Analyze the effect of built-in (or automatic) stabilizers on a country’s economy.
    • Explain how built-in stabilizers work.
    • Explain the differences between proportional, progressive, and regressive tax systems as they relate to an economy’s built-in stability.
Part 2
  • Analyze the concept of the multiplier effect.
    • How does this concept relate to both economic recessions and vigorous economic expansion?
Part 3
  • Explain the impact of an increase in net exports on real GDP, assuming the economy is operating below its potential output.
  • Explain why it is difficult for a country to boost its net exports by increasing its tariffs during a global recession.

Organize your assessment logically with appropriate headings and subheadings. Support your work with at least 3 scholarly or professional resources and follow APA guidelines for your citations and references. Be sure you include a title page and reference page.

Additional Requirements

  • Include a title page and reference page.
  • Number of pages: 3–4, not including title page and reference page.
  • Number of resources: At least 3 scholarly or professional resources.
  • APA format for citations and references.
  • Font and spacing: Times New Roman, 12 point font; double-spaced.
 
 

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