ECO203 Final Paper: Expansionary Economic Policy Economics Term Paper (Term Paper Sample)

ECO203 Final Paper: Expansionary Economic Policy
Name
ECO 203 Principles of MacroeconomicsInstructor
Date
ECO203 Final Paper: Expansionary Economic Policy
Introduction
Despite facing various economic challenges along with the ever-changing global landscape, the United States economy is currently the largest in the world. The current statistics indicate that the U.S. economy is approximately 20 percent of the total global output (Focus Economics, 2016). There are various factors that have enabled the U.S. economy to thrive successfully over the years. For instance, the country has a sophisticated physical infrastructure, numerous natural resources, and well-educated workforce. Additionally, the U.S. government provides an effective legal system, political stability, and a regulatory framework that allow the economy to thrive successfully both in short and long-run. For the past few years, the U.S. economy has been emerging from the 2007-2009 Great Recession, which led to a collapse of several major financial institutions and the housing market in 2008. In an effort to take the economy out of the recession, the U.S. government would implement various expansionary policies (Alesina & Giavazzi, 2013). This paper intends to explore the actions that the Federal government would adopt to address both expansionary fiscal and monetary policies.