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Discussion of the keynesian expenditure multiplier

Assignment Help Macroeconomics
Reference no: EM132476300

During the period of the "Great Moderation" (the mid-1980's through the mid-2000's), discussion of the Keynesian expenditure multiplier had largely gone out of fashion. After all, if business cycles were largely tamed, the effects of a significant demand shock seemed irrelevant. When the Great Recession hit at the end of 2007, the expenditure multiplier became a hot topic again for discussion among Macroeconomists.

Did the government take the appropriate response to the Great Recession? Was the fiscal stimulus response to the recession enough, just right, or too much?

Reference no: EM132476300

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