American recovery and reinvestment act of

Question

1. WHAT

The Obama administration initiated ‘‘American Recovery and Reinvestment Act of 2009'' making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes. The study investigates the impact of this Stimulus Bill on the economic recovery on income or output and employment.

2. WHY

This provides a good exercise to apply the concept of IS-LM curve for an expansionary policy at the time of a great depression. This stimulus package generates consumption and investment, which create output and employment, and expedite economic recovery.

3. HOW

The use of diagrams clarifies the movement of IS-LM curves by the expansionary policy.

The use of equations is essential to understand monetary and fiscal policies

The use of empirical data and explanation to explain the policy impact.

Summary and Conclusion are required to finalize the term paper.

Answer 1

Please consider the scenario illustrated below and respond accordingly. The Obama administration started ‘American Recovery and Reinvestment Act of 2009’making supplemental appropriations for the job preservation and creation, infrastructure investment, energy efficiency and science, help to the unemployed and State and local fiscal stabilization, for the fiscal year ending year September 30, 2009 and for other aims. The study examines the impact of this Stimulus Bill on the economic revival on income or output and service. This gives a good exercise to implement the concept of IS-LM curve for the expansionary policy at the time of great depression. This stimulus package produces consumption and investment that create output and employment and speed up economic recovery.