I do not believe that borrowing is a good way to recover from a severe recession. Borrowing only solves short term problems, then in the long run the economy is hurt worse because they have to deal with the debt they already had plus this large new sum of money that was borrowed.
2. Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did the government spending increases and large budget deficits of 2008–2011 strengthen aggregate demand? Discuss.
3. What is the current rate of unemployment (See bls.gov and indicate the month you are reporting)? How rapidly has GDP grown during the past 3 quarters (See bea.gov and state the quarterly growth rate for each year)? What do these figures indicate about the validity of the Keynesian view?
4. Are changes in discretionary and fiscal policy likely to be instituted in a manner that will reduce the ups and downs of the business cycle? Why or why not?
This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 4.
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1. Will increases in government spending financed by borrowing help promote a strong recovery from a severe recession. Why or why not?
I do not believe that borrowing is a good way to recover from a severe recession. Borrowing only solves short term problems, then in the long run the economy is hurt worse because they have to deal with the debt they already had plus this large new sum of money that was borrowed.
2. Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did the government spending increases and large budget deficits of 2008–2011 strengthen aggregate demand? Discuss.
3. What is the current rate of unemployment