Background: Economic Stimulus

This section looks at the tools available to the government to help reverse economic downturns and evaluates their likely effectiveness.

• What is the Economic Stimulus Act of 2008
• What does the 2008 stimulus act do for individuals?
• What does the 2008 stimulus act do for businesses?
• What is the role of monetary policy?
• How do automatic stabilizers work?
• When is fiscal stimulus appropriate?
• What characteristics make fiscal stimulus most effective?
• What fiscal stimulus options would be most effective?
• What fiscal stimulus options would have questionable effectiveness?
• What fiscal stimulus options should be avoided?