Macroeconomics II

Two parts, APA, no word count requirement


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Part I

What is full employment?

Economists disagree about what full employment is and the best policies to achieve full employment.

For two opposing points-of-view see position papers from the liberal Economic Policy Institute at:

and the conservative Heritage Foundation at:


Should the US aim to achieve a low unemployment target?

List the arguments on each side of this debate.

What are the strongest two arguments on each side?

What policies are needed to achieve this target?

What do you recommend?


Part II

Imagine you come back to your economics class in the year 2050. How will the textbook describe money and banking? Based on trends you see today, make a prediction for the future of money. Explain why you think this trend will occur and how it will affect the US economy.

For information on the currency now in circulation go to:


gov/paymentsystems/default.htm” rel=”nofollow”>


And the Bureau of Engraving and Printing’s “fun facts about money” at:

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