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Provide one example from the 2007-2009 or the 2020 recessions of active fiscal or monetary policy....

Provide one example from the 2007-2009 or the 2020 recessions of active fiscal or monetary policy. Are you in favor of or against active policy, based on your study of stabilization policy debates? Please provide appropriate arguments to support your answer.

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Answer #1

Answer - In 2020 , the example of fiscal policy which is expansionary in nature is CARES ACT . This act will provide the unemployment benefits to people who have been laid off from jobs during this pandemic and resulting recession. This act will also provide the adequate funding to small business to continue their operations and keep the cycle of the economy growing. Hence , I am in favour of this policy and it will surely help to revive the economy out of this pandemic caused recession.

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