Drawing on an example from the text, demonstrate how have presidents used fiscal policy to manage the national economy

What will be an ideal response?

The ideal answer should:
a. Define fiscal policy as the strategic use of taxing and spending to influence the economy, noting that it is rooted in the theories of John Maynard Keynes.
b. Discuss the differences between expansionary and contractionary fiscal policy, noting that expansionary policy seeks to use fiscal tools to grow the economy while contractionary policy seeks to use fiscal tools to temper the excesses of the business cycle and restore economic stability.
c. Demonstrate the use of fiscal policy through a discussion of presidential responses to the Great Recession, which included George Bush's support for the $700 billion bailout of the American banking sector through TARP and Obama's efforts to create jobs and encourage long-term growth through theAmerican Recovery and Reinvestment Act,noting that both of these efforts relied on massive outlays and the increase of deficits to achieve their objectives.