it probably goes without staying that a macroeconomy or national economy experiences 503875 | Homework Solutions

It probably goes without staying that a macroeconomy or national economy experiences periods of expansion (usually marked by increases in real GDP, employment, and production) and periods of decline (usually marked by decreases in real GDP, employment, and production). A prolonged period of decline across a national economy is called a recession. While some people define a recession as two consecutive quarters of declining real GDP, this is not the official definition which economists use:

Two of the most intense recessions in the past several generations in the United States were the Great Depression of 1929-1933 and the Great Recession of 2007-2009. Which recession or depression was the most destructive to the U.S. economy? Why?

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2. WEEK 2 DQ 2 – Recent examples of expansionary fiscal policy

Expansionary fiscal policy is defined as a policy which a government implements which involves an increase in government spending and/or a decrease in taxation levels. Sometimes a budget deficit might be involved with expansionary fiscal policy. The goal with expansionary fiscal policy is to stimulate a national economy during times of declining economic activity.

Can you think of any recent examples of expansionary fiscal policy which have been used by the United States government during or since the Great Repression of 2007-2009? How did these stimulus programs impact the economy? Where they successful? Why or why not?

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