Asked by Daisy Cheng on May 18, 2024
Verified
The macropolicy solution to the 2001 recession was substantially easier to implement than in 2008 because
A) in 2001,we had a much more qualified chairman of the Federal Reserve.
B) in 2008,we had "Obama care" health care program.
C) in 2001 we had a government surplus and in 2007 we had a large government surplus.
D) in 2001 we had a smaller number of illegal immigrants in the country.
Government Surplus
The situation where a government's revenue exceeds its expenditures during a given timeframe, indicating a positive fiscal balance.
Federal Reserve
The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.
- Evaluate the impact of macroeconomic strategies during various economic downturns.
Verified Answer
ED
elijah davisMay 23, 2024
Final Answer :
C
Explanation :
In 2001, the government had a surplus and therefore had more fiscal resources to implement macroeconomic policies to combat the recession. However, in 2008, the government had a large deficit which made it difficult to implement policies such as fiscal stimulus without further increasing the deficit. The other options A, B, and D, are not directly related to the feasibility of implementing macroeconomic policies during a recession.
Learning Objectives
- Evaluate the impact of macroeconomic strategies during various economic downturns.