Monetary and Fiscal Policies against Recession

Answer this qusetion.

Monetary and Fiscal Policies against Recession (20 points)

Governments can take actions to avoid a Recession or to mitigate the effect of a Recession. Those governmental actions to affect macroeconomic outcomes (like unemployment, inflation, and GDP growth) are called Fiscal Policy.

a. Did the US government take any actions recently to support the economy and avoid/mitigate the effect of a recession? List those actions and explain how they impact the economy (be precise, avoid general statements). (10 points)

Central Banks (in the US, the Central Bank is called Federal Reserve Bank) can take actions to avoid a Recession or to mitigate the effect of a Recession. Actions by the Central Bank to affect macroeconomic outcomes (like unemployment, inflation, and GDP growth) are called Monetary Policy.

b. Did the Federal Reserve System take any actions recently to support the economy and avoid/mitigate the effect of a recession? List those actions and explain how they impact the economy (be precise, avoid general statements). (10 points)