WA #2 Instructions- ECO 2013 Principles of Macroeconomics
Write not more than a four-page, doubled -spaced 12 sized Arial font report in which you detail the evolution and implementation of Keynesian Macroeconomic policies and your understanding from having read the final chapters on Fiscal and Monetary policies discussed in the textbook. Cite historical examples of effective Keynesian policies as they have been enacted -from the Great Depression and the Great 2007-09 Recession of the financial system. Compare vs contrast why Keynesianism did not particularly work during the 70’s stagflation. Why do you think Keynesian policies proved not to be effective at the time and the economic reasoning behind this that vindicates Keynes. Include at least 3 sources in your reaction paper outlined on a third ‘Works Cited” page. Hint-think in terms of Keynesian spending to stimulate AD when the nation undergoes a short run fluctuation in GDP and employment due to the onset of a recession/depression or high inflation. Try to follow your reasoning logically in relation to what the fiscal policy tool-expansionary or contractionary aims at achieving in the macro economy in terms of FE levels of GDP and employment. You may use in—text citations or footnotes in your narrative. You might want to show graphically episodes of expansionary and contractionary fiscal or monetary policies to support your arguments via the Keynesian AD_AS Model
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