1. Theory of Demand Side Economics
Is it more cost effective during a fiscal trough to lower interest rates dramatically and increase governmental spending? ... For example, as the short run is key we can evaluate the actions the US FED took after the collapse of the sub-prime mortgage market. ... While advocates of Keynesian economics will argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes, monetary policy actions by a central bank and fiscal policy actions by the government are needed to stabilize output over the business cycle. ... What all of these examples illustrate is that the privat...
- Word Count: 663
- Approx Pages: 3
- Grade Level: Undergraduate