Case 1
Describe how government spending and the composition of the government has changed in recent decades. In other words, in what areas has the government cut spending and in what areas has the government increased spending in recent decades?
Determine if this change in government spending and composition will help Americans achieve a higher standard of living. Be sure to support all claims with research.
Assess whether democracy can survive if the majority of U.S. citizens pay little or nothing in taxes but benefit directly from increased government spending. Why or why not?
Propose the composition of government, government spending, and taxation that you believe would work best. Be specific and support your proposal with research.
Case 2
Describe briefly how Keynes’s and Hayek’s economic theory and views differ.
Contrast the two views on how savings impact the economy.
Compare the two views on whether the economy would fluctuate, more or less, over the business cycle without government intervention. Be sure to address the inherent stability of the market economy and the impact of government interventions to steer the economy.
Hypothesize on which economist theory, Keynes or Hayek, you believe is more credible and explain why. Be specific and support your hypothesis with research.
Case 1 Describe how government spending and the composition of the government ha
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