02 Jun Question Focus of the Final Paper In an effort to move the economy out of a recession
Question
Focus of the Final Paper
In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Describe the actions the government would take in conducting expansionary fiscal policy and expansionary monetary policy.
Expansionary Fiscal Policy: Review Chapter 7:Classical Macroeconomics and the Keynesian Challenge and Chapter 9: Taxes, Government Spending, and Fiscal Policy.
Explain the actions the federal government would take while engaging in expansionary fiscal policy in terms of the following:
The necessary change in taxes and government spending,
The effect on aggregate demand, GDP, and employment.
Final Paper
Expansionary Monetary Policy:
Review Chapter 12: Banking and The Federal Reserve System and Chapter 14: Monetary Policy In Theory And Practice.
Identify the three tools available to the Federal Reserve Bank (The Fed) when conducting monetary policy. Explain whether the Fed would:
Increase or decrease the required reserve
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