Please help me reply to these two students posts:

Post 1:

Hello Class!

Before I begin; congrats! We made it to the final unit! I've had a great time interacting and learning with you all. I wish you all luck in your future endeavors.

I found the Washington Post article, "Biden signs $1.2 trillion spending bill into law, averting government shutdown," by authors Jacob Bogage and Maegan Vazquez. This article details how a bill for $1.2 trillion was approved just in time, narrowly avoiding a government shutdown. The bill made the deadline with a few minutes to spare. The bill itself includes funding for the government for the next 6 months. Specifically, this bill raises the wages of the military, eliminates funding for the U.N. agency for Palestinian refugees, and bolsters the security at the U.S. border. Of course, this bill had an extremely difficult time during its evolution before an agreement could be made. The passing of this bill represented a conclusion to a months-long disagreement about determining federal funding, one that began in October of 2023 (Bogage, et. al, 2024).

I remember hearing about this situation, and that the U.S. government narrowly avoided a shutdown. Personally, I don't have any experience in that level of conflict resolution, but I realize that this decision was months in the making. At a certain point, both parties had to compromise in order to keep the government from shutting down. This article is relevant to fiscal policy and its effect on the macro-economy since this policy allows the U.S. government to spend $1.2 trillion on wages and agencies. This amount of money is no small action, and it will undoubtedly have a large effect on the amount of money in circulation. As far as governmental actions to be made, in 6 months there will need to be another bill made to fund the government for the rest of the year.

Post 2:

Hello,

This week I listened to a podcast named Economists debate what is causing inflation on NPR. Fiscal policies can be expansionary or contractionary. I learned that the change in government spending and taxation to influence AD. It can also boost growth in the economy, reduce unemployment and increase the inflation (demand). This podcast resonated with me as a Human Resources professional I fully understand the inflation and how it impacts unemployment. Hiring individuals once the government provides tax breaks and residual income makes it challenging to recruit and retain.

This newfound knowledge on fiscal policies impacts the current state of the economy by fiscal policy, unlike monetary policy, occurs when the government participates in the marketplace. To help cool down an overheated economy, itraises taxes so people and businesses will spend less. To help stimulate a sluggish economy, the government spends money hiring people and buying goods and services. It is necessary for the government to adjust to assist the federal reserves.