Discuss how to close a recessionary gap

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1. Discuss how to close a recessionary gap. Discuss how to close an expansionary gap. What is the target and what happens if the policy "over-shoots?" What happens if a president tries to lower the unemployment to win the election? Did this ever happen?

2. What was the FP used before the Great Depression? After the Great Depression? What is the difference between automatic stabilizer FP and discretionary FP? How well has FP policy worked in the last recession (2007-2009)? Successes? Failures?

Reference no: EM131194403

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