1. Should the government use monetary and fiscal policy to stabilize the economy, or should it adhere to policy rules and refrain from upsetting the economy? To answer this question please compare and contrast the view of Keynesian economics to Monetarist economists.

Monetarist economics and Keynesian Economics want the same thing. They both affect the way U.S. government leaders develop and use fiscal and monetary policies (Lioudis, 2015). However, Monetarist view everything as temporary that if you just wait it recession and inflation will end up fixing itself. While Keynesian sees it as it will continue to spiral downhill unless it is intervened by said fiscal policy in order for the economy to get back up on its feet. When it comes to choosing between the two it can be a tough one. Both are not wrong ways to do it but the biggest problem is how long is temporary. Technically recessions are temporary but how long will we have to wait and what type of damage would be done. Therefore, I'm going to have to go with fiscal policy. This will allow for a speed up in the process of getting back to normal levels. However, The government just has to be careful with the amount of expenditure in to fixing the economy in order to prevent an even harder recession in the near future.

2. What wouldthe Classicalshave thought about the Fed's handling of the financial crisis?Compare theClassicals'view toMonetarist'viewFed's handling of the financial crisis.

The differences between classical view and Monetarist view is that the Classicals saw the handling of the financial crisis was to aggressive and could potentially create more problems in the future. The monetarist thought that the feds should have boosted the growth rate early on in order to create growth in the money supply. The classicals would have ultimately applauded the feds handling because it allowed for filling the market with higher activity therefore more money.

Reflection - the students also should include a paragraphin the initial responsein their own words, using macroeconomic terminology,reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.

It's really interesting when we talk about the economy and how it is affected and what can be done to increase economic growth. I think when we talk about a recession, inflation, and high interests rates most people don't realize everything that goes on and how it is controlled. Talking about the different policies and how each one is used to stabilize the economy has given me a greater understanding of how to use my own money and the financial decision I have made or will make in the future.

respond with value added comments to your peers based on his/her thought