The Fed uses monetary policy to affect the supply and demand for money. The monetary policy affects interest rates, aggregate spending, and economic growth. How does the Fed’s policies have the power to prevent recessions. Should the Fed intervene to prevent recessions?

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.