Reference no: EM13871495
1. WHAT
The Obama administration initiated ‘‘American Recovery and Reinvestment Act of 2009'' making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes. The study investigates the impact of this Stimulus Bill on the economic recovery on income or output and employment.
2. WHY
This provides a good exercise to apply the concept of IS-LM curve for an expansionary policy at the time of a great depression. This stimulus package generates consumption and investment, which create output and employment, and expedite economic recovery.
3. HOW
The use of diagrams clarifies the movement of IS-LM curves by the expansionary policy.
The use of equations is essential to understand monetary and fiscal policies
The use of empirical data and explanation to explain the policy impact.
Summary and Conclusion are required to finalize the term paper.
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