26 Oct PART A: Fiscal Policy During the Great Recession Research the fiscal policy implemented in the US during the Great Recession. 1. Explain the Economic Stimulus Act of 2008 and the American
PART A: Fiscal Policy During the Great Recession
Research the fiscal policy implemented in the US during the Great Recession.
1. Explain the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009.
2. Discuss if these programs are Keynesian or Classical.
3. Please include how increases in aggregate demand through government expenditures and tax cuts (through the multiplier effect) increase GDP in your answers.
PART B: Fiscal Policy During the Covid-19 Recession
Research the fiscal policy implemented in the US during the Covid-19 Recession.
1. Explain the CARES Act of 2020 and the American Rescue Plan Act of 2021 (ARPA).
2. Discuss if this program is Keynesian or Classical.
3. Explain the effects of these programs using the AD/AS Model. (e.g. how the shifts in aggregate demand through government programs (through the multiplier effect) change GDP).
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