issue: using fiscal and monetary policy\nas the american economy slid into recession in 1929, economists…

issue: using fiscal and monetary policy\nas the american economy slid into recession in 1929, economists relied on the classical theory of economics, which promised that the economy would self - correct if government did not interfere\nbut as the recession deepened into the great depression and no correction occurred, economists realized that a revision in theory would be necessary. john maynard keynes developed keynesian theory, which called for government intervention to correct economic instability. one of the most important functions of our government today is to try to correct inflation and recession in our economy\nin this lesson, you will learn about the tools the congress and the federal reserve can use to correct economic problems, and how the use of those tools affects the money supply, interest rates, and aggregate demand. then you will analyze economic data to determine how fiscal and monetary policy should be used to correct economic problems.\ndirections for beginning\nbreak into groups of 3 - 4 students. you will now examine the research sources. your teacher will give you two documents, and show you two videos. take notes because you may need to refer to your notes while writing your argumentative essay\nfirst, we’ll look at fiscal policy.\nsource #1: fiscal policy document (included at end of task)\nsource #2: fiscal policy video: http://www.youtube.com/watch?v = 5bwzbyr0og0\nresearch questions\nafter examining the research sources, discuss and answer the following questions with your group members. also, your answers will help you to think about the research sources you have viewed and read, which should help you write your argumentative essay.\n1. according to keynes, what should the government do to taxes and government spending during a time of recession?

issue: using fiscal and monetary policy\nas the american economy slid into recession in 1929, economists relied on the classical theory of economics, which promised that the economy would self - correct if government did not interfere\nbut as the recession deepened into the great depression and no correction occurred, economists realized that a revision in theory would be necessary. john maynard keynes developed keynesian theory, which called for government intervention to correct economic instability. one of the most important functions of our government today is to try to correct inflation and recession in our economy\nin this lesson, you will learn about the tools the congress and the federal reserve can use to correct economic problems, and how the use of those tools affects the money supply, interest rates, and aggregate demand. then you will analyze economic data to determine how fiscal and monetary policy should be used to correct economic problems.\ndirections for beginning\nbreak into groups of 3 - 4 students. you will now examine the research sources. your teacher will give you two documents, and show you two videos. take notes because you may need to refer to your notes while writing your argumentative essay\nfirst, we’ll look at fiscal policy.\nsource #1: fiscal policy document (included at end of task)\nsource #2: fiscal policy video: http://www.youtube.com/watch?v = 5bwzbyr0og0\nresearch questions\nafter examining the research sources, discuss and answer the following questions with your group members. also, your answers will help you to think about the research sources you have viewed and read, which should help you write your argumentative essay.\n1. according to keynes, what should the government do to taxes and government spending during a time of recession?

Answer

Brief Explanations:

La teoría keynesiana sostiene que durante una recesión, la economía tiene una demanda agregada insuficiente. Para estimular la economía, el gobierno debe implementar políticas fiscales expansivas. En términos de impuestos, Keynes propuso bajar los impuestos para que las familias y las empresas tengan más dinero disponible para gastar o invertir, lo que aumenta la demanda agregada. En cuanto al gasto gubernamental, Keynes recomendó aumentar el gasto gubernamental en áreas como infraestructura, servicios públicos, etc. Este gasto directo crea empleos y genera ingresos, lo que a su vez impulsa el consumo y la inversión, estimulando la economía.

Answer:

Según Keynes, durante una recesión, el gobierno debería bajar los impuestos (para aumentar el ingreso disponible de las familias y empresas, fomentando el consumo y la inversión) y aumentar el gasto gubernamental (para crear empleos, generar ingresos y estimular la demanda agregada directamente).