Your essay should include the following elements:

Part I Fiscal Policy - Background and Implementation

1. What economic circumstances gave rise to the Keynesian approach to understanding the workings of the economy?
2. What are the principal differences between the Keynesian and Classical approaches to understanding the workings of the economy?
3. What economic challenges is Fiscal Policy designed to address?
4. What are the tools used in implementing Fiscal Policy?

Part II Fiscal Policy - Challenges and Practical Application

1. How is Fiscal Policy financed?
2. What are the challenges inherent in ensuring that Fiscal policy is effective?
3. What are the economic trade-offs inherent in implementing Fiscal Policy?
4. What are the political challenges inherent in implementing Fiscal Policy?
5. Describe the recent ten-year history of Fiscal Policy in the United States (Please use specific examples).