My definition of a recession is when the average American struggles, because there are no jobs, and barely any money to survive off of. “The economic meaning of a recession is when the economy declines significantly for at least six months. That means there's a drop in the following five economic indicators: real GDP, income, employment, manufacturing and retail sales.” (Amadeo, 2017) A recession doesn’t usually hit very hard so that it is immediately noticeable. It can start up pretty slowly several months to years before the economy changes dramatically and begins to affect everyone.
During the Great Recession, which spanned from 2008 to 2012, the government used fiscal and monetary policies to implement change in our economy. There were major adjustments to the budget and a huge focus on the countries debt and how it was effected by the war. “The Great Recession is a term that represents the sharp decline in economic activity during the late 2000s, which is generally considered the largest downturn since the Great Depression.” (The Great Recession, n.d.) In this essay, I will briefly discuss the use of fiscal and monetary policies implemented during the Great …show more content…
Like monetary policy, it can be used in an effort to close a recessionary or an inflationary gap.” (Rittenberg & Tregarthen, The Use of Fiscal Policy to Stabilize the Economy, 2017) An example of how fiscal policy was used to help end the Great Recession in 2009, during the beginning of the Obama Administration, a bill was passed to cut taxes and increase spending in order to help aid in ending the recession. The Fiscal Stimulus bill provided $800 billion to help stimulate the economy for a couple of years, hoping that there would be a great growth in the real GDP, which they had watched slowly decline since the last quarter of the year
During the Great Recession, which spanned from 2008 to 2012, the government used fiscal and monetary policies to implement change in our economy. There were major adjustments to the budget and a huge focus on the countries debt and how it was effected by the war. “The Great Recession is a term that represents the sharp decline in economic activity during the late 2000s, which is generally considered the largest downturn since the Great Depression.” (The Great Recession, n.d.) In this essay, I will briefly discuss the use of fiscal and monetary policies implemented during the Great …show more content…
Like monetary policy, it can be used in an effort to close a recessionary or an inflationary gap.” (Rittenberg & Tregarthen, The Use of Fiscal Policy to Stabilize the Economy, 2017) An example of how fiscal policy was used to help end the Great Recession in 2009, during the beginning of the Obama Administration, a bill was passed to cut taxes and increase spending in order to help aid in ending the recession. The Fiscal Stimulus bill provided $800 billion to help stimulate the economy for a couple of years, hoping that there would be a great growth in the real GDP, which they had watched slowly decline since the last quarter of the year