Demand-side Policies and the Great Recession of 2008
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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 ” 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 through using fiscal and monetary policies causing aggregate demand to shift to the right.
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, and in APA format. Note your submission will automatically be submitted through “TurnItIn” for plagiarism review. Please note that a minimum of 700 words for your essay is required.
1. Cover page with a running head
2. Introduction: What is the economic meaning of a recession?
2.1 A discussion of fiscal policies and the specific fiscal policies adopted during the Great Recession of 2008.
2.2 A discussion of monetary policies and the specific monetary policies adopted during the Great Recession of 2008.
3. Conclusions: Discuss the extent to which the use of demand side policies during the Great Recession of 2008 were successful in restoring economic growth and reducing unemployment
4. References
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