Question
Discuss how government policy (such as fiscal policy: government spending and taxes) impact the economy. How does it effect aggregate demand, aggregate supply, and the
Discuss how government policy (such as fiscal policy: government spending and taxes) impact the economy. How does it effect aggregate demand, aggregate supply, and the price-level, employment, unemployment, labor force participation rate, economic growth and development, even the stock market. Please feel free to share your understanding of the Keynesian approach (the policies recommended by J. M. Keynes) to resolve economic variations. How did these work historically during periods of economic crises such as the Great Depression, the 2008 Financial Crisis and the Great Recession? How is the fiscal stimulus and government policies during the Covid-19 impact today's echnomy?
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