economics

economics

Paper instructions:
Due January 7, 2012 at 11;59pm. Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations, and what incentives can government do, if anything?
Your response should be a minimum of 1000 words and should cover the bullet points above. Upload your paper, do not post it.
There are many Internet resources available but consider links such as: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.a
http://www.federalreserve.gov/

OR

A major concern of the Federal Reserve is to maintain stable prices. It attempts to do so through influencing the money supply and interest rates. You are to examine the impact and consequences of both inflation and deflation. Address the following areas in your presentation:
Identify the causes of both inflation and recession or deflation.
Identify the ways inflation and deflation can damage the economy and the society
What policies can the Federal Reserve use in trying to prevent inflation or deflation in the macro economy?
What are some of the short term uncertainties and longer run risks in using these policies? If you must accept a tradeoff between higher prices or fewer jobs: which is the better choice and why?
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