In the face of the 2008-09 financial crisis and recession, U.S. policymakers confronted an immediate need to stabilize the financial system, mitigate a sharp decline in business activity and rise in unemployment, and stimulate an economic recovery.

Describe the macroeconomic policies, both monetary and fiscal, that the U.S. pursued in response to the crisis. Place these policy measures into an aggregate supply/demand framework:how were they intended to work?What risks (tradeoffs) did they entail? What might have been/should be done differently?Why?