Overview
Policy responses to economic crises are essential for stabilizing economies during downturns. Governments and central banks utilize various tools, including fiscal and monetary policies, to stimulate growth and protect citizens. Understanding these responses helps us appreciate the complexity of eco...
Key Terms
Example: Increasing public spending to boost economic growth.
Example: Lowering interest rates to encourage borrowing.
Example: Tax rebates to increase consumer spending.
Example: Two consecutive quarters of negative GDP growth.
Example: Weekly payments to support those who lost their jobs.
Example: The Federal Reserve purchasing government bonds.