Essay on Canada Analysis

1183 Words Aug 9th, 2014 5 Pages
United States vs. Canada
[Econ 101 – Summer]

United States vs. Canada
Macroeconomics is the field of the economics that deals with how individuals change their economic behavior when there is change in the market-wide policies. One of the two applications that are widely studied in the macroeconomics is the Fiscal Policy, Monetary Policy and aspect of Monopoly. The fiscal policy is implemented by the government of the U.S. The monetary policy is reviewed during the schedule of 8 meetings per year, during which it is analyzed and discussed that how economic and financial developments taking place in the country and determines the appropriate stance of the monetary policy. However, monopoly disables new and young
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The Keynesian theorists believe in correcting economic downturns with fiscal policy actions. Actions that would please Keynesian theorists would include changes in government spending, changes in the amount of taxes, and changes made to investments in long term productive growth. During the most recent fiscal crisis, these theorists were happy with the stimulus package that was created by the government. The government in 2009 introduced an economic stimulus package that increased government spending which caused the government deficit to increase and with the multiplier of government spending tried to increase demand. Keynes held the opinion that the state needed to play a larger role in the economy in order to eliminate some of the uncertainty involved in the classical economics models. Through increased government involvement Keynes believed policy decisions could be made to ensure full employment that might not happen in other circumstances (, 2014). The monetary theorists do not put much value in the actions of government onto the economy. That is to say that they do not believe the government can do any good by changing fiscal policy. Monetary theorists believe that changes in the money supply are the best way to effect changes on an economy. They would prefer to increase production and growth by increasing the amount of money that comprises the money supply. And they

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