ECO 203 Week 3 Assignment, Efforts to Reduce the Budget Deficit
Recessions affect the increased debt every time they hit. The recession in 1980 raised unemployment, dropped GDP. Despite the 10 year “golden era” in the 90’s, after the terrorist attack of 2001 growth came to a standstill. The “Great Recession” lasted from December 2007 to June 2009. This affected financial institutions, as well as the automobile industry. In an effort to bring stabilization back into the economy, the government passed a $700 billion bailout as well as a $787 billion fiscal stimulus package…………Continued
ECO 203 Week 3 Discussion 1, Government Fiscal Policy
Discuss some actions taken by the federal government and whether the recession would have been longer and the unemployment rate higher if the government had not acted by passing the stimulus package? If left alone, do you believe the economy would have corrected itself as suggested by Classical economic theory? Explain. Discuss the effect these policies had on increasing the size of the budget deficits and the national debt.
ECO 203 Week 3 Discussion 2, Budget Deficits and the National Debt
Differentiate the budget deficit from the national debt. How do you think the increases in the budget deficits and the national debt will affect the economy in the future?
ECO 203 Week 3 Quiz (10 Questions and Answers)