Please write a paragraph for each questions below, thanks in advance! 1. What is
ID: 1172985 • Letter: P
Question
Please write a paragraph for each questions below, thanks in advance!
1. What is Keynesian economics? Explain how policymakers used Keynesian economics in response to the Great Recession. Be sure to include discussion about the types of fiscal and monetary policies that were used.
2. What is a long-run consequence of running persistent budget deficits? Why is it a problem? Provide reasons from the textbook or reasons discussed in the (2008) movie, I.O.U.S.A.
3. If conventional monetary policy can no longer lower interest rates, what option(s) does the central bank have to stimulate the economy? Provide an example of the Fed
Explanation / Answer
1.) Keynesian economics is the view that in the short run, especially during recessions, economic output is strongly influenced by aggregate demand
The view that the economy is largely self-regulating was at odds with Keynesian economics, which claimed that managing the economy, via the tools of fiscal and monetary policy, is the government