Later in the term you’ll be analyzing how the policies advocated by various presidential candidates would affect the economy in the short run (aggregate demand) and the long run (potential output). To get started, you will need to do some research on the specific policy ideas they are proposing.
Pick one major presidential candidate (even if they later drop out of the race, you can still continue with your analysis). Next, do some research to identify the relevant ideas or specific policy proposals they have. You might find the candidates’ policy ideas described in news articles, on the candidates’ web sites, or in other reliable sources. Your focus should be on policies that are likely to have significant macroeconomic (whole economy) impact. These are apt to include significant changes in fiscal policy (government spending or taxes), monetary policy (policies of the Federal Reserve), or structural policies that are likely to impact wages, employment, the development of human capital, innovation, or other significant pieces of the overall economy.
Write a brief but detailed description of at least two policy ideas you’ve identified, and describe in general terms how you think these policies would affect the macroeconomy in the short run or the long run. In describing the policy ideas, be as specific as you can: if the policy involves a change in taxes, for example, include as much detail as you can about exactly which taxes would be changed, and in what way. Include complete and correct citations for all your sources.
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