Discuss some episodes of the last century when the U.S. economy seriously contracted, especially the Great Recession of 2007-2009 and the Great Depression. What was the response of Fiscal Policy? What was the response of Monetary Policy? Remember that Monetary policy is managed by the Fed, or the central bank of the United States, and Fiscal policy is managed by Congress, which votes on new taxes and government programs. Do you think specifically that the Fiscal Policy response was appropriate? Why or why not? What was the effect on the U.S. national debt? Do you think there can come a time when further interest rate cuts become ineffective, and Fiscal Policy must be considered? On balance, do you think Fiscal Policy is an effective approach to macroeconomic stabilization? How are automatic stabilizers different from an active, discretionary Fiscal Policy? What do you think the best policy response might be to a recession? What influenced your answer?