Wednesday, February 18, 2009

Unit 2: The Obama stimulus package

AP summarises the Obama stimulus package's major areas as

$240bn in tax breaks for individuals and businesses
$140bn for health care
$100bn for education
$48bn for transportation projects

a) What sort of policy would you catagorise this package as? Explain your answer

b) Explain, using an AD/AS diagram, how this package should effect the US economy in both the short and the long run

c) To what extent do you believe this package is likely to achieve its objectives?

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