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1Keynesian EconomistCourtney DixonAshford UniversityECO203: Principles of MacroeconomicsThomas FitzgeraldJanuary 5, 2020
2Keynesian EconomistThe United States of America went through a struggle from 2007-2009 with the economics during that time. This was one of the worst recessions since the Great Depression. The prices of housing decreased, which caused the housing market to crash, in addition unemployment rates were really high during this time in history. Looking at the economy as a Keynesian economist, there are many things that caused the financial crisis. In addition, looking at the actions of the Federal Reserve and the United States government during this time in historywill also show how the economy fell and struggled. From 2007 to 2010 the Federal Reserve used many practices unfamiliar to the U.S centralbank. According to Amacher and Pate,“The Fed extended credit to nonbank financial firms. The Fed also purchased assets and loans from firms deemed ‘too big to fail’.” From 2007 to 2010, the Federal Reserve used many practices unfamiliar to the U.S. central bank.Respond to the following components as an economist representing either the classical or Keynesian school:Evaluate critically, as a classical or Keynesian economist, what caused the 2007 to 2009 financial crisis.Examine the causes that aggravated the financial crisis during the period?