ECO 202 Week 6 Discussion | Southern New Hampshire University
Fiscal policies are used
by the government to stabilize the economy. During the 2020 emergency caused by
the coronavirus pandemic, the U.S. government approved a stimulus package that
increased the U.S. debt.
For this discussion,
first play the simulation The
Debt Fixer (from
the Committee for a Responsible Federal Budget), in which you make fiscal
policy decisions in an attempt to reduce the U.S. debt. You can play the
simulation as many times as you like.
In your initial post,
include an image of your simulation report. (See Module
Six Simulation Discussion Screenshot Instructions PDF.)
Then address the following:
your experience in the simulation. What strategies did you pursue? Were you
successful in reducing the debt?
your opinion, is a high national debt a problem for future economic growth?
What is the ideal debt-to-GDP ratio? Research academic sources or refer to the
information available through the simulation to support your opinion.
spending increases national debt and can cause a crowding-out effect. Explain
what the crowding-out effect is and why it's considered a negative effect of
increased government spending. Use information from the textbook to support
In your responses,
comment on at least two posts from your peers by comparing and contrasting your
experiences and opinions. Share current news articles or references from the
textbook that support your decisions in the simulation and your claims related
to the national debt.