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ECON102 Assignment 2: Demand-side Policies and the Great Recession of 2008




Question;Assignment 2: Demand-side Policies and the Great Recession of 2008;Macroeconomic analysis deals with the crucial issue of government;involvement in the operation of "free market economy." The Keynesian;model suggests that it is the responsibility of the government to help;to stabilize the economy. Stabilization policies (demand-side and;supply-side policies) are undertaken by the federal government to;counteract business cycle fluctuations and prevent high rates of;unemployment and inflation. Demand side policies are government;attempts to alter aggregate demand (AD) through using fiscal (cutting;taxes and increasing government spending) or monetary policy (reducing;interest rates). To shift the AD to the right, the government has to;increase the government spending (the G-component of AD) causing;consumer expenditures (the C-component of AD) to increase. Alternatively;the feral Reserve could cut interest rates reducing the cost of;borrowing thereby encouraging consumer spending and investment;borrowing. Both policies will lead to an increase in AD.;Develop an essay discussing the fiscal and the monetary policies adopted;and implemented by the federal during the Great Recession and their;impacts on the U.S. economy. Complete this essay in a Microsoft Word;document, APA formatted and then submits it to "TurnItIn" for plagiarism;review. Please note that a minimum of 500 words for your essay is;required.;Your paper should be structured as follows;1. Cover page with a running head;2. Introduction: What is the economic meaning of a recession?;? A brief discussion of fiscal policies;? A brief discussion of monetary policies;3. Conclusions: Discuss the extent to which the use of;demand side policies (fiscal policy and monetary policy) during the;Great Recession of 2008 has been successful in restoring economic growth;and reducing unemployment;4. References


Paper#58054 | Written in 18-Jul-2015

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