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You are to form a group of four (4) students and appoint a team leader. You should be appropriately dressed for your presentation which should be around 10 minutes. Power point presentation should be included. 4. The term project is due April 04, 2013. Late papers will not be accepted. Group presentations will begin on that date. Microeconomics Term Project 2 5. Respond to the following questions: (answer in sequence of the questions) Questions 1. Does our recession differ from the Great Depression? Explain.

You need to apply library and internet research, class discussions and
textbook reading in answering the following questions and in providing
your thoughts and suggestions as to the cause and possible solutions to
restore our economy back to prosperity.

2. You must provide a bibliography for all of your research.

3. This term project is to be typed double spaced and be 4 to 6 pages.

5. You are to form a group of four (4) students and appoint a team leader. You
should be appropriately dressed for your presentation which should be
around 10 minutes. Power point presentation should be included.

4. The term project is due April 04, 2013. Late papers will not be
accepted. Group presentations will begin on that date.

Microeconomics Term Project

2

5. Respond to the following questions: (answer in sequence of the
questions)

Questions

1. Does our recession differ from the Great Depression? Explain.

2. The housing �bubble� and subsequent foreclosures and house value decline nearly
caused our financial institutions to collapse resulting in our Government bailout or
�TARP�. What caused this �bubble� and nearly had a disastrous impact on our
Financial markets, as well as, on our financial institutions? (consider our monetary
policy, sub-prime mortgages, Governmental controls and greed) Did the housing
�Bubble� cause our recession? Explain.

3. Employment and personal savings (wealth) are key elements to both our domestic, as
well as, the Global Economy. Explain the impact of both a decline in housing values
and our high unemployment on our economy? Why do you think the Housing
�Bubble� resulted in a high unemployment? What steps have the Government taken to
reduce this level of unemployment? Has there possibly been a structural change to
our Economy re-defining the nature of full employment? Explain

4. Wall Street (financial institutions) and the banking industry were affected by the
housing collapse. Many would say that they were the cause of it. How were they
affected by this housing collapse? As a result, the Government used �TARP� money
to bail out these institutions. In your opinion, should they have been bailed out?
Explain your answer.

5. According to John Maynard Keynes, private enterprise cannot operate alone without
Government involvement. In your opinion, what steps do you think both the
Government and private industry should take to turn our recession into economic
prosperity?

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