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ECO 203 Week 3 Discussion Question 1 Government Fiscal Policy_NEW_.doc

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ECO 203 Week 3 Discussion Question 1 Government Fiscal Policy_NEW_.doc Powered By Docstoc
					Government Fiscal
Policy

Between 2007 and 2009 theU.S.economy experienced a severe
recession.  In an effort to stimulate the economy, the federal
government passed a stimulus package. Explain the federal
governmentÂ’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?Â
     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.

Reference:Â Chapter 9, section 9.4: More Recent Tax Changes, and
Chapter 10, section 10.2: Early 1990s and 2000s Recessions.Â

				
DOCUMENT INFO
Description: ECO 203 Week 3 DQ 1 Government Fiscal Policy ECO 203 Week 3 DQ 2 Budget Deficits and the National Debt ECO 203 Week 3 Assignment Efforts to Reduce the Budget Deficit ECO 203 Week 3 Quiz ECO 203 Week 2 DQ 1 The Current State of the Economy and Unemployment ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation ? ECO 203 Week 2 Quiz ECO 203 Entire Course ECO 203 Week 1 DQ 1 Economics Systems ECO 203 Week 1 DQ 2 Role of Government ECO 203 Week 1 Quiz ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007-2008 Recession ECO 203 Week 4 DQ 2 The Effect of Bank Lending on the Economy ECO 203 Week 4 Quiz ECO 203 Week 5 DQ 1 Foreign Direct Investment ECO 203 Week 5 DQ 2 Economies in Transition ECO 203 Week 5 Final Paper Expansionary Economic Policy
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