Author Question: How have government policies and programs affected the volatility of the business cycle in the ... (Read 106 times)

neverstopbelieb · **on:** Jun 29, 2018

How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact.

What will be an ideal response?

Question 2

A central bank like the Federal Reserve in the United States can help banks survive a bank run by

A) raising the discount rate. B) acting as a lender of last resort.
C) printing money. D) increasing the required reserve ratio.

lkanara2 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Government programs like unemployment insurance and Social Security have helped to shorten recessions since they provide additional income to individuals who might not otherwise be able to continue consumption spending. Since the Great Depression the federal government has also become more actively committed to maintaining low unemployment, which may have reduced the severity of recessions and prolonged expansions.

Answer to Question 2

B