economics discussion

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This post should be in RESPONSE TO THE FOLLOWING QUESTIONS and must be 250 words. USE OF PEER- REVIEWED SOURCES IS A MUST FROM THE BETHELUNIVERSITY DATABASE BUT IN YOUR OWN WORDS, NO DIRECT QUOTES.

 

 

 

Choose an expansionary FISCAL policy that you would recommend to help an economy that is in a recession. This should be a specific action that government could take to increase GDP.   You should not choose a monetary policy (i.e. interest rate manipulation, selling of bonds, or printing of money).

 

 

 

Explain how your policy would help increase aggregate demand. That is, does it increase C, I, G, or X?

Explain what would happen to prices (i.e. inflation).

You may use either the Modern Keynesian model or the Classical Model to conduct your analysis. Just be sure to note which one you are using.

 

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