Think about how fiscal policy can affect your firmAmazon on the website http://fortune.com/fortune500/2012/amazon-com-inc-56/?iid=leftrail(#56).. Please address the following questions in a 3- to 4-page essay:
1. Suppose the government imposes tax cuts for 95% of all households. How does this affect your firm?
2. To what extent is your organization’s financial health affected by fiscal and monetary policy? Please give at least one specific example.
3. As the session comes to a close, assess the overall financial health of your organization. What are good and bad signs, if any, in your assessment? Now, make a forecast for the future! How do you see your firm in ten years?
SLP Assignment Expectations
Use concepts from the modular background readings, as well as any good-quality resources you find from the Trident online library or other Internet search engines. Be sure to cite all sources within the text and provide a reference list at the end of the paper.
Length: 3-4 pages, double-spaced and typed.
The following items will be assessed:
• Your ability to explain the relationship between economic indicators and your organization.
• Some in-text references to the modular background readings (APA formatting not required).
• The essay should address each element of the assignment. Remember to support your answers with solid references.
Module 4 – Background
FISCAL AND MONETARY POLICY
This module explores the business cycle and economic fluctuations. You will also learn how to use aggregate demand and aggregate supply to understand what is happening in the economy. The special role of taxation, government spending, and import/export activities is also discussed.
We will also examine the role of money in the economy. It is important to understand how money is defined. We will also analyze banks and other financial intermediaries that impact the creation of money. The Federal Reserve (the central bank) and how it controls the money supply is also explored. Changes in the money supply have major impacts on inflation, output, and employment. Please review the following background materials:
Required Reading
Aggregate Demand, Supply, and Fiscal Policy, Interactive Tutorial.http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=11387
Money and the Banking System, Interactive Tutorial. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12277
Discussion Video
Khan Academy Video: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/keynesian-thinking/v/keynesian-economics