Economic Essay

Minimum 750 words for each question. 

4 Files require to read for each question. Two of them are posted.

1. Real Business Cycle theory and the financial instability hypothesis of Hyman Minsky represent two distinct schools of thought regarding the causes of recessions. What are the major differences between the two theories of recessions and what are their implications of real estate investors?

2. In December 2017 the US Congress passed legislation that will reduce corporate and individual taxes by estimated $1.5 trillion over 10 years. In what ways is this action similar to a conventional Keynesian counter-cyclical stimulus? In what ways does it differ? In general terms would you expect the macroeconomic effects to be?