PART A: Fiscal Policy During the Great Recession

Research the fiscal policy implemented in the US during the Great Recession.

1. Explain the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009.
2. Discuss if these programs are Keynesian or Classical.
3. Please include how increases in aggregate demand through government expenditures and tax cuts (through the multiplier effect) increase GDP in your answers.

Here are a few resources for you:

(feel free to use other credible sources and cite your references in your discussion post)

Bush Signs Stimulus Bill (Economic Stimulus Act of 2008)(Links to an external site.)

Obama's Stimulus Package (American Recovery and Reinvestment Act of 2009)(Links to an external site.)

The US Economic Stimulus Plan 2009

PART B: Fiscal Policy During the Covid-19 Recession

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

1. Explain the CARES Act of 2020 and American Rescue Plan Act of 2021 (ARPA).
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.

What's Inside the $2 Trillion Coronavirus Aid Package(Links to an external site.)

Designing the Fiscal Response to the Covid-19 Pandemic(Links to an external site.)

The CARES Act

American Rescue Plan Act

(Links to an external site.)

Note: This discussion is about fiscal policy (Government spending and Taxes) only! We will discuss the monetary policy (interest rates and money supply) in a separate discussion. Please include only fiscal policy in your answers.