principles of macroeconomics 18 |

Wk 5 Discussion 1

Aggregate Supply and Economic Growth [WLO: 3] [CLOs: 1, 2]

Economic growth may be attained when either aggregate demand or aggregate supply shifts to the right. Prior to beginning work on this discussion, read Chapter 15 from the course text, especially examining Section 15.2, and respond to the following components:

What are the different effects between aggregate demand-based growth and aggregate supply-based growth?
What may shift aggregate supply to the right? Thoroughly explain its process.
As a policy maker, would you prefer the strategies of aggregate supply-based economic growth or aggregate demand-based growth? Why or why not?

As a proponent of either aggregate supply-based growth strategies or aggregate demand-based growth strategies, what would you recommend for the current U.S. economy to achieve stable economic growth?
Your initial post should be a minimum of 300 words.
Wk 5 Discussion 2

The Challenge of Economic Development [WLO: 4] [CLOs: 3, 5]

Imagine you oversee a developing countryâ€s growth and have been approached by a multinational corporation interested in locating in your country. Prior to beginning work on this discussion, read Chapter 16, especially examining Section 16.5, and respond to the following components:

Describe a multinational corporation and foreign direct investment (FDI).
Identify some benefits and costs for the host country from allowing a multinational corporation to locate there, despite its developing economy.
Evaluate whether developmental assistance from world developmental agencies, such as the World Bank or the United Nations, would be preferable to private investment.

What would you decide between developmental agency assistance or private investment, such as FDI from multinational corporations? Why? Explain.
Your initial post should be a minimum of 300 words.

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