Explore how fiscal policy and monetary policy drive aggregate demand, influencing economic growth through spending, taxation, and money supply changes.

Downturns in the business cycle cause cyclical unemployment, so policymakers should focus on expanding output, which can be achieved by stimulating demand.

The Department of Government Efficiency has the objective of cutting government spending by $2 trillion per year out of $6.8 trillion in spending. This is nearly as large as the $2.43 trillion/year in ...

President-elect Donald Trump’s key policy initiatives — tax cuts, tariffs and deportations — will dampen GDP growth in 2025, although the larger effect on growth will be in 2026. Tax cuts will boost ...

August 2024's positive private sector surplus of $397 billion supports risk asset markets, predicting a continued upward trend into September and October. Federal fiscal injections, especially during ...