Reference no: EM13182613
total Research as you wish the American Recovery and Reinvestment Act of 2009 or the Tax Relief and Job Creation Act of 2010 that were passed as expansionary fiscal policy to deal with the U. S. Great Recession of 2008. In 2011, the original expenditure estimate of $787 billion was increased to $840 billion to be in line with the President's 2012 budget and with changes made by the Congressional Budget Office since the enactment of the Recovery Act. To achieve the goal of transparency, the Act requires recipients of Recovery funds to report every January, April, July, and October on how they are using the money. All the data is posted on Recovery.gov so the public can track the Recovery funds.
Focus on ONE specific policy of the fiscal stimulus and answer the following with cited source and data
1.briefly state the policy and what it is meant to do (who wins)
2. give the dollar amount of the fiscal stimulus that was proposed or has been executed.
3. Assume the MPC to be 80% (.8) and based on your information in 1 and 2 above calculate the impact of the change in Government Spending, G, or the change in taxes, T, to determine the maximum possible change in real GDP in the economy. CLEARLY SHOW YOUR WORK. Points will be deducted for not showing your work.
5. Conclude with your opinion (normative statement) as to whether this policy was appropriate and effective stimulative fiscal policy. Support your reply by addressing potential or actual complications to success and its impact on the debt.
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: Assume the MPC to be 80% (.8) and based on your information in 1 and 2 above calculate the impact of the change in Government Spending, G, or the change in taxes, T, to determine the maximum possible change in real GDP in the economy. CLEARLY SHOW..
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