Your Recession Strategy

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NXI095814

Economics

Description

Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid an increase in inflation and bring the economy to full employment as rapidly as possible.

Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals? What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Provide justification and examples to support your conclusions.

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Explanation & Answer

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Professor
Course Details
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Keynesian Economics
The Keynesian economics is a well-equipped theorem that can teach anyone about the
ways of surviving in case of an economic depression. The classical economic didn’t work so well
on the great depression in America, but the Keynesian economics emerged with significant
solutions that solved the tragedy. In fact Shaikh (44-63) stated that the Keynesian economics
worked so well on the great depression by providing ways of escaping and avoiding th...


Anonymous
I was struggling with this subject, and this helped me a ton!

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