Discuss the effects of the Great Recession on America’s economy and discuss the fiscal and monetary policy decisions made by the Federal during that time. You will need to complete this essay using Microsoft Word.
Both the Great Recession 2008 and demand-side policies
Fiscal policy is a way to limit economic activity by changing government spending or taxation. Fiscal policy is the government’s attempt to stimulate economic growth and reduce poverty. Fiscal policy was created in response to governments’ interventions to help financial institutions grow, boost economic growth and cushion the effects of the crisis on the poorest and most vulnerable. Fiscal policy’s role in policymaking has been prominent and neglected for a number of years. Before 1930 laissez-faire was the dominant political philosophy. Also known as minimal government.
The government demanded an interventionist strategy after the crash of the markets and during the Great Depression. A global recession is possible as many countries adopted tighter fiscal policies in the wake of financial chaos.
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