Adoption and implementation of monetary policies during the Great Recession

This is a paper that is focusing on the adoption and implementation of monetary policies during the Great Recession. The paper also provides additional information to use in the writing of the assignment paper. Below is the assessment description to follow:

Adoption and implementation of monetary policies during the Great Recession
Develop an essay discussing the fiscal and the monetary policies adopted and implemented by the federal during the Great Recession and their impacts on the U.S. economy. Complete this essay in a Microsoft Word document, and in APA format. Note your submission will automatically be through “TurnItIn” for plagiarism review. Please note that your essay needs to have a minimum of 700 words and a maximum of 1100 words.

Your paper should be structured as follows 1. Firstly, cover page with a running head 2. Introduction: Secondly, what is the economic meaning of a recession? · A brief discussion of fiscal policies · A brief discussion of monetary policies 3. Conclusions: Lastly, discuss the extent to which the use of demand side policies (fiscal policy and monetary policy) during the Great Recession of 2008 has been successful in restoring economic growth and reducing unemployment 4. References

Macroeconomic analysis deals with the crucial issue of government involvement in the operation of “free market economy.”. The Keynesian model suggests that it is the responsibility of the government to help to stabilize the economy. Stabilization policies (demand-side and supply-side policies) are undertaken by the federal government to counteract business cycle fluctuations and prevent high rates of unemployment and inflation. Demand side policies are government attempts to alter aggregate demand (AD) through using fiscal. (cutting taxes and increasing government spending) or monetary policy (reducing interest rates). To shift the AD to the right, the government has to increase the government spending (the G-component of AD) causing consumer expenditures (the C-component of AD) to increase.

Alternatively the Federal Reserve could cut interest rates reducing the cost of borrowing thereby encouraging consumer spending and also investment borrowing. Both policies will lead to an increase in AD.

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