Assignment 2: Demand-side Policies and the Great Recession of 2008
Macroeconomic analysis deals with the crucial issue of government
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ECON102 Assignment 2: Demand-side Policies and the Great Recession of 2008...

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"Question
Assignment 2: Demand-side Policies and the Great Recession of 2008
Macroeconomic analysis deals with the crucial issue of government
involvement in the operation of ""free market economy."" The Keynesian
model suggests that it is the responsibility of the government to help
to stabilize the economy. Stabilization policies (demand-side and
supply-side policies) are undertaken by the federal government to
counteract business cycle fluctuations and prevent high rates of
unemployment and inflation. Demand side policies are government
attempts to alter aggregate demand (AD) through using fiscal (cutting
taxes and increasing government spending) or monetary policy (reducing
interest rates). To shift the AD to the right, the government has to
increase the government spending (the G-component of AD) causing
consumer expenditures (the C-component of AD) to increase. Alternatively
the feral Reserve could cut interest rates reducing the cost of
borrowing thereby encouraging consumer spending and investment
borrowing. Both policies will lead to an increase in AD.
Develop an essay discussing the fiscal and the monetary policies adopted
and implemented by the federal during the Great Recession and their
impacts on the U.S. economy. Complete this essay in a Microsoft Word
document, APA formatted and then submits it to ""TurnItIn"" for plagiarism
review. Please note that a minimum of 500 words for your essay is
required.
Your paper should be structured as follows
1. Cover page with a running head
2. Introduction: What is the economic meaning of a recession?
· A brief discussion of fiscal policies
· A brief discussion of monetary policies
3. Conclusions: Discuss the extent to which the use of
demand side policies (fiscal policy and monetary policy) during the
Great Recession of 2008 has been successful in restoring economic growth
and reducing unemployment
4. References"

 

Solution ID:393767 | This paper was updated on 26-Nov-2015

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