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.

1. What would the Classicals have thought about the Fed's handling of the financial crisis?
2. Compare the Classicals' view to Monetarist 'view Fed's handling of the financial crisis.
3. Reflection - the students also should include a paragraph in the initial response in 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.

The government should absolutely use monetary and fiscal policy to stabilize the economy. Without having monetary and fiscal policy available to help the economy it ultimately sets the economy up for failure. Imagine a class of kids with no one to give guidance and create structure. This will not end well for the kids at all and that's a comparison of how the economy will not survive without monetary and fiscal policy.

Monetary policy is one of the tools the government uses that affects the overall performance of the economy. Changes to the monetary policy affect interest rates in the economy. Leading to the effects on economic activity and inflation. Inflation rates play a huge role in the economy. Inflation affects all aspects of an economy such as spending, investing, employment, policies, government programs, and interest rates. In history, Monetarism has proven itself time and time again showing how successful it can be in improving an economy's growth.

Fiscal policy is the means by which the government adjusts its spending and tax policies to influence the economy. These factors include employment, goods and services, inflation, and economic growth. Overall, fiscal policy helps maintain a healthy economy.

Central banks bent over backwards and jumped through hoops to provide emergency funds to institutions that needed financial assistance during that time. Classicals were furious about the decisions that were made at this time. The difference between a Classical's view and a Monetarist's view is that Classicals believe that money is considered neutral. The Classical's would have gone with the Fed's decisions to expand the monetary base to match corresponding increases in the demand for money.

Through this week's discussion, I learned that having structure and a set of rules can play a vital role in the economy. Monetary and fiscal policy are implemented to help maintain a healthy economy and improve the economy's growth. They are very helpful when the economy is facing hardship such as during the Covid-19 era.

respond with value added comments start with "great thought!!"