One of the tools available to influence the well-being of the economy fiscal policy. The federal government may utilize fiscal policy as an expansionary or contractionary action, depending on the goal of the policy. In this assignment you will investigate specific fiscal policy initiatives taken during the Coronavirus pandemic in the United States and recognize the effects of the policy on economic output, the labor market, and the federal debt.
During the Coronavirus pandemic, the United States launched many fiscal policy initiatives to stabilize and grow the United States economy. For this assignment, complete the following in paragraph form:
1. Define fiscal policy and explain whether the government should implement an expansionary or contractionary fiscal policy during the pandemic.
2. Identify one of the fiscal policy initiatives implemented at the federal level during the pandemic. Describe the program: What was it? What was it designed to do? How large or a program was it? Use outside research from The Wall Street Journal or another newspaper from 2020 or 2021 to support your assertions.
3. Was this program designed to impact economic output, the labor market, or both? Explain.
4. What were the costs associated with this program? How did it effect the amount of the Federal Debt?
Response should be a minimum of 300 words and include at least one outside source in addition to the text. Provide a reference list in APA format. Do not include a title page.
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- Define fiscal policy and explain whether the government should implement an expansionary or contractionary fiscal policy during the pandemic.