Question: The chapter suggests that one reason it was difficult to predict the severity of the 20072009 recession is that the financial crisis was not anticipated

The chapter suggests that one reason it was difficult to predict the severity of the 2007–2009 recession is that the financial crisis was not anticipated by most economists, and thus the severity of the recession was also not anticipated.
a. What might the failure to anticipate the recession imply about the effectiveness of fiscal policy in preventing or reducing the severity of the recession?
b. What fiscal policies might have been implemented earlier if the recession had been anticipated?

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