In 2020 the Fed, Congress, and the White House discussed ways of restoring full employment after the drop in output due to the Covid-19 pandemic. The objective is to stimulate aggregate demand. Discuss the likely effectiveness of the following in accomplishing the goal: A tax cut to low-income households.        An increase in government spending. An increase in the purchase of securities by the Fed.  A depreciation of the USD against foreign currenci

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter10: Aggregate Demand And Supply
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In 2020 the Fed, Congress, and the White House discussed ways of restoring full employment after the drop in output due to the Covid-19 pandemic. The objective is to stimulate aggregate demand.

Discuss the likely effectiveness of the following in accomplishing the goal:

  • A tax cut to low-income households.       
  • An increase in government spending.
  • An increase in the purchase of securities by the Fed. 
  • A depreciation of the USD against foreign currencies.
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