Question

Here, you will state whether you agree or disagree with fiscal and monetary policy actions taken in the 2000’s (2000-2010).

Fiscal Policy actions:

The Economic Stimulus Act of 2008

American Recovery and Reinvestment Act of 2009

Monetary Policy actions:

The Federal Open Market Committee

• It is possible that some actions you agree with and other you disagree with - that is fine. You can discuss your reasons for disagreement or agreement on a case-by-case basis.
• In your argument, be sure you are using our economic models and concepts to support you and not just your own opinion or feeling about what is best. For instance, saying that we should not have spent money on government programs because it's not fair to give out money to people would not be an macroeconomics-based reason. You could say that increased government spending through expansionary fiscal policy created too much inflation later on and so you disagree with that action.

Answer 1

The Economic Stimulus Act of 2008

It was an act of Congress which aimed at boosting the economy of the US. Tax incentives and targeted government spending were required in the US. Rebate payments were given to the US households and as a result of this, disposable income of the households grew. It was a policy to be agreed with.

American Recovery and Reinvestment Act of 2009

American Recovery and Reinvestment Act of 2009, or simply the Recovery Act was enacted by the US Congress in the year 2009 and was made an act under the leadership of Barack Obama.It was a successful fiscal policy as it reduced unemployment to a great extent.

The Federal Open Market Committee

The Federal Open Market Committee comprises of twelve members. It holds eight meetings per year which are scheduled on a regular basis. In these meetings, the financial and economic conditions are reviewed. The monetary policies undertaken by this committee are aimed at boosting the economy and improving the GDP of the country.