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The Pros And Cons Of The Great Recession

750 Words3 Pages

Demand-side Policies and the Great Recession of 2008
Korey R. Snowden
American Military University
ECON102 I003 Sum 17

Abstract A recession is a drastic change in economic growth. The Recession of 2008 was the worst recession the Unites states has seen since WWII. Our economy took a drastic turn for the worst and influenced the lives of many for the worst. Not only did it effect the people and our economy but it effected our government as well. However when our economy takes a turn for the worst, there is ways in order to turn it around. These are called Fiscal policies and monetary policies. Fiscal policies improve the growth of our economy by decreasing unemployment and increasing the amount of spending in our economy. Monetary policies are set in place to manage inflation. Even though the recession was a low point for our economy, the plans that were set in place helped the U.S. get back on its feet and continue to be the great country that it is today.

1. Introduction: What is the economic meaning of a recession?
The economic meaning of a recession is defined as “a period of general economic decline and is typically accompanied by a drop in the stock market, …show more content…

They can do this by selling government bonds or trading bonds, changing the amount of money in the bank vaults, and changing interest rates. There are two types of Monetary Policy which are expansionary and contractionary. Expansionary will ultimately increase money to decrease unemployment. This boosts the private sector of business and increase spending of the people. Contractionary is put in place to slow inflation within the economy. They do this by slowing the rate of growth in the money supply. This method can be bad because it can lead to a recession but the outcome will result in the stoppage of inflation within the

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