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WILMINGTON, Del., Jan 14 (Reuters) - President-elect Joe Biden outlined a $1.9 trillion stimulus package proposal on Thursday, saying bold investment was needed to jump-start the economy and accelerate the distribution of vaccines to bring the coronavirus under control.

Biden campaigned last year on a promise to take the pandemic more seriously than President Donald Trump, and the package aims to put that pledge into action with an influx of resources for the COVID-19 response and economic recovery.

Unemployment rates were lower in January 2021 than in December 2020 in 33 states and the District of Columbia and stable in 17 states. The national unemployment rate, 7.3 percent in January 2021, fell by 0.4 percentage point over the month, but was 2.8 points higher than in January 2020. The actual unemployment rate, however, was estimated at 13.3%.

The aid package includes $415 billion in increased government spending to bolster the response to the virus and the rollout of COVID-19 vaccines, some $1 trillion in direct relief to households, and roughly $440 billion for small businesses and communities particularly hard hit by the pandemic to spur capital investment.

Stimulus payment checks would be issued for $1,400 - on top of the $600 checks delivered by the last congressional stimulus legislation. Supplemental unemployment insurance would also increase to $400 a week from $300 a week now and would be extended to September.

1A. Using the Keynesian Macro Model, set out the U.S. economy in the 1st quarter of 2021 labeling AD, AS, P, and Y with the subscript 1.

1B. Insert potential GDP into the Model relative to real GDP in the 1st Quarter.

2A. Define fiscal policy.

2B. List the three fiscal policy measures mentioned in the Module.

2C. Argue (in less than 50 words) whether the proposed economic plan announced by President Biden in January 2021 was fiscal policy.

3. Using three causal chains, illustrate the proposed effect on the economy of the three policy measures.

4. Return to the Keynesian Model in (1) and make changes to the Model as predicted by the three causal chains set out in 3.

5. In September 2021 the BLS reported that payroll employment rose by 194,000 in September, and the unemployment rate fell by 0.4 percentage point to 4.8 percent. The Federal Reserve reported the actual capital utilization rate at 75.2%.

Argue (in less than 50 words) whether the proposed economic plan announced by President Biden in January 2021 was effective fiscal policy.

*Please have it all typed, i will give this a thumbs up if all questions answered*

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