In this paper, we use the Moody’s Analytics model of the . economy—adjusted to accommodate some recent financial-market policies—to simulate the macroeconomic effects of the government’s total policy response. We find that its effects on real GDP, jobs, and inflation are huge, and probably averted what could have been called Great Depression . For example, we estimate that, without the government’s response, GDP in 2010 would be about lower, payroll employment would be less by some 8½ million jobs, and the nation would now be experiencing deflation. .
