*Instructions: Please read the unit material attached and
answer the following questions or analysis thoroughly. Minimum word count is
300 total. Use APA format to include in-text citations and a reference page. You
must include the course material
provided as a reference. Here is the reference: Sexton, R. L. (2013). Exploring economics (6th ed.). Mason, OH:
South-Western, Cengage Learning. Also, an outside scholarly source is required, at least one. Separate your
answers by paragraphs please. NO PLAGIARISM PLEASE! Let me know if you have any questions or
concerns. Thank you!
Using what you read in this unit, choose an expansionary FISCAL policy that you
would recommend to help an economy that
is in a recession. This should be a specific action that government could
take to increase GDP. You should NOT
choose a monetary policy (i.e. interest rate manipulation, selling of bonds, or
printing of money).
Explain how your policy would help increase aggregate
demand. That is, does it increase C, I, G, or X?
Explain what would happen to prices (i.e. inflation).
You must use either the Modern
Keynesian model or the Classical Model to conduct your analysis. Just be
sure to note which one you are using.