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In the 1920's Keynesian economics key theory is that fiscal policy including government spending, price controls and tax policies can support aggregate demand, stimulate
In the 1920's Keynesian economics key theory is that fiscal policy including government spending, price controls and tax policies can support aggregate demand, stimulate consumption, and reduce unemployment. We have studied Government budgeting including pass throughs and tax incentives. We studied Food Riots to understand the role of a central government to ensure infrastructure is in place to support consistent and adequate food supplies. Whereas Milton Friedman advocated monetary policy and free markets beginning in the 1950's. Monetary policy manages the overall supply of money available to banks, consumers, and businesses by establishing the bank borrowing rates. We have studied the Federal Reserve Board (the FED)and specifically the Community Reinvestment Act, it's purpose, challenges and enforcement activities as one example of the Fed's compliance with the United States Constitution. We studied measurements of an economy such as Gross Domestic Product(ion) GDP data, unemployment, inflation including cost shocks and investment bubbles and the role of each institution, the government and the FED. Technological innovations such as dynamite, morse code, electricity, the telephone, GPS, combine harvesting, nuclear power. have stimulated the economy, challenging the government and the FED.
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