Classical economic theory, Macroeconomics

Assignment Help:

Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal government's use of fiscal policy (the stimulus) to promote growth and employment. Support your ideas with concepts found in the assigned reading. Include the following in your response:
• Discuss some actions taken by the federal government and whether the recession would have been longer and the unemployment rate higher if the government had not acted by passing the stimulus package?
• If left alone, do you believe the economy would have corrected itself as suggested by Classical economic theory? Explain.
• Discuss the effect these policies had on increasing the size of the budget deficits and the national debt.


Related Discussions:- Classical economic theory

What is the basic function of central banks, Q. What is the basic function ...

Q. What is the basic function of Central banks? A central bank is a public authority which is responsible for monetary policy for a country or a group of countries. Two signifi

Neo-classical theory of trade, explain the neo-classical theory of trade an...

explain the neo-classical theory of trade and show the difference between this and the classical approach, as wellas the similarities

Explain the term- inventory investment, Explain the term- inventory investm...

Explain the term- inventory investment We would have a negative inventory investment whenever inventories decrease. By net investments we mean gross investments minus depreciat

Introducing the foreign trade sector, Introducing the Foreign Trade Sector ...

Introducing the Foreign Trade Sector  Most economies in the real world are open economies. They engage in trade with other economies. Goods and services are exported and import

For product price elasticity of demand, You are the manager of a firm that ...

You are the manager of a firm that receives revenues of $50,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -3,

Balance of trade, Balance of T rade A country's present accoun...

Balance of T rade A country's present account reflects a money drain when exports exceed imports. The net distinction in-between the dollar value of a world imports an

Description of inflation in detail, Description of Inflation in detail ...

Description of Inflation in detail Inflation is the rate at which average price level of services and goods rises in a given time period. In UK the Office for National Statist

Economics, what is a limitation of nation income

what is a limitation of nation income

Explain why interest rates are pro-cyclical, Critically explain why interes...

Critically explain why interest rates are pro-cyclical, using the supply and demand for bonds framework.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd