2.9

Research the fiscal policy implemented in the US during the Covid-19 Recession.

1. Explain the CARES Act of 2020.
2. Discuss if this program is Keynesian or Classical.
3. Explain the effects of these programs using the AD/AS Model. (e.g. how the shifts in aggregate demand through government programs (through the multiplier effect) change GDP).

Some resources are below. Feel free to use other sources and cite your references.

https://www.npr.org/2020/03/26/821457551/whats-inside-the-senate-s-2-trillion-coronavirus-aid-package

https://www.piie.com/blogs/realtime-economic-issues-watch/designing-fiscal-response-covid-19-pandemic

https://home.treasury.gov/policy-issues/cares#:~:text=Assistance%20for%20State%2C%20Local%2C%20and,of%20the%20COVID%2D19%20outbreak.