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Does a Tax Reduction Stimulate the Economy?

Words: 2000

General Guidelines

As a minimum, the project must contain the following parts:

  • Example: Oil Prices and Supply Shock

  • Introduction: in this part, the group should explain the importance of the chosen topic, summarize of the content of the project and describe its contents.

  • Theory: This part must contain the analysis from the economic theory point of view using the tools and models developed in ECON 112. o Example: You may choose to use the AD-AS model to show the impact of an oil shock on the economy in the short and long run.

  • Application: in this part, the group has to link the economic theory with real-life examples. For example, students may discuss how the fall in oil prices affect oil-exporting and oil-importing countries differently. This can be done by utilizing media articles or by collecting and analyzing basic data on oil prices and link this data to the main macroeconomic indicators of a given country such as inflation, unemployment, and economic growth.

  • Conclusion: in this part, students should summarize the main findings of the project and convince the reader that the authors have tackled the topic scientifically and logically using economic theory.
  • References: all references should be listed.

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