Write an essay · Developing a brief summary of endogenous and exogenous growth theories. · Analyzing the impact of government policy on the long-term growth rate of an economy.

During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spending on safety net programs rise. So, to stabilize the national economy, government appears to have only two options (neither good) either to put in place severe austerity measures (cut spending) or increase borrowing. Of course, it is very difficult to defend cuts in the federal government programs and especially the programs geared to sustain the minimum of the standard of living for the “poor.” But increase in borrowing has major adverse impacts on the national economy.
Write an essay analyzing
· Different theoretical views on national debt,
· Long-run costs of high national debt,
· Costs of eliminating the budget deficit solely through (1) personal tax increases, and/or (2) through spending cut by decreasing in transfer payments (i.e., Social Security, Medicare and Medicaid) and in discretionary spending (such as defense and education budgets).
Complete this essay in a Microsoft Word document, APA formatted which will automatically submit it to “TurnItIn” for plagiarism review. Please note that a minimum of 700 words is required.
PART II
In neoclassical growth models, the sources of growth, is exogenous usually “technology”. Such theoretical models hence are able to describe how an economy grows, but not why it grows. To overcome this shortcoming, several growth models have been developed that make growth an endogenous variable. In contrast to neoclassical growth theory, endogenous growth theory argues that policy measures (such as subsidies on R&D and education) can have an increase long-run growth rate of an economy.
Write an essay
· Developing a brief summary of endogenous and exogenous growth theories.
· Analyzing the impact of government policy on the long-term growth rate of an economy.
Complete this essay in a Microsoft Word document, APA formatted which will automatically submit it to “TurnItIn” for plagiarism review. Please note that a minimum of 700 words is required.
Deadline: 12 Hours
Format: APA
Pages: One and a half page for each part
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