Can You Explain Growth And Stability Under The Light Of Macroeconomic Policies?

Since its origins, capitalism has been plagued by periodic bouts of inflation and recession. Since World War 2, for example, there have been nine recessions in the United States, some putting millions of people out of work.
Today thanks to the intellectual contribution of Keynes and his followers, we know how to control the worst excess of business cycle. By careful use of fiscal and monetary policies, governments can affect output, employment, and inflation. The fiscal policies of government are the power to tax and the power to spend. Monetary policy involves determining the supply of money and interest rates, these affect investment and capital goods and other interest rate sensitive spending. Using these two fundamental tools of macroeconomic policy, governments can influence the level of total spending, the rate of growth and level of output, the levels of employment and unemployment, and the price level and rate of inflation in an economy.
Governments in advanced industrial countries successfully applied the lessons of the Keynesian revolution over the last half-century. Spurred on by active monetary and fiscal policies, the market economies witnessed a period of unprecedented economic growth in the three decades after World War 2.In the 1980's governments became more concerned with also designing macroeconomic policies to promote long-term objectives, such as economic growth and productivity.