Research Paper on:
World Trade Center Attacks and Macroeconomics

Unformatted Sample Text from the Research Paper:
the World Trade Center Towers and the Pentagon. However, from a macroeconomic level, we can determine that these attacks helped accelerate the economic downturn, and are likely impacting the  ability of the economy to recover. We will discuss this war by analyzing the article "Macroeconomic impacts and implications for business" by Chris Varvares, which was published in the American  Economic Journal during the latter part of 2001. Before examined and the macroeconomic impact of the terrorist attacks however, it would be  helpful to redefine what, exactly macroeconomics is. In its most basic sense, macroeconomics analyzes and studies the performance of the entire economy (Tutor2U, 2002). While microeconomics focuses solely on  supply and demand between consumer and organization, macro economics also takes into account changes in economic growth such as inflation, employment/unemployment statistics and pray performance with other countries -- also  known as balance of payments (Tutor2U, 2002). Macroeconomics can also analyzes government economic policies and their successes or failures (Tutor2U, 2002). In  his article, Varvares points out the link between the terrorist attacks, consumer confidence, government consumption and economic recovery. One dilemma in the U.S. economy had faced prior to the terrorist  attacks was President George W. Bushs attempt to stimulate the economy through tax rebates redistributed to taxpayers. The idea looked good on paper -- the budget had a surplus,  and the president opted to return that surplus to the taxpayers in hopes they would increase consumer spending and therefore stimulate the economy. However, the terrorist attacks and the  aftermath -- along with this tax rebate -- got rid of the surplus (Varvares, 2001). None of this has helped the current economic recession.