Choose ONE of the following questions and write a brief 700 word response. Remember to cite any sources you use.
- Which economic theory seems more accurate to you: classical or Keynesian theory? In your explanation, describe the key assumptions of the theory you chose and explain why you think those assumptions are reasonable to make. In your answer, include research or examples to justify your explanations.
- Recently, the unemployment has been trending downwards. At the same time, the labor force participation rate has been experiencing a long, slow decline. How should we feel about the current employment situation in the U. S. economy? Are there any reasons why this decline in the labor force participation rate is harmless or, at least, inevitable? Are there reasons why this decline is troubling? Explain your answers.