A. What is the CARES Act, when was it passed, and what body was responsible for...

A. What is the CARES Act, when was it passed, and what body was responsible for passing it?

B. Research one fiscal policy action included in the CARES Act. First, explain which curve(s) is/are expected to shift in the short run as a result of this action and why? Second, do you expect the action to have any effect on the long-run growth prospects of the economy? (Limit your answer to ~100 words)

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Expert Solution

A. CARES act Known as Coronavirus Aid, Relief , and Economic security act have been passed to provide economic assiatnace to all the small business, families and workers in America and also ensure to protect jobs for families in America.

It was passed on March 27, 2020. The US department of treasury is responsible for the passing it.

B. The fiscal policy action of providing the assistance to the key industries like airlines or health services. Under health services, telehealth services are promoted. The cares act provide funds to the state governments to imporve the health facilities in each of the state. This move will help in builiding the better infrastructure. The infrastructure investment by the governments will shift the Aggregate demand curve to the right. The infrastructure investment will have effect on the long run prospects of the economy as it will promote further investment by private sectors also.

Rahul Sunny answered 1 week ago

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