Share
Explore BrainMass

strategy to bring the economy out of recession

Suppose that you are the chief economic advisor to the president of the U.S. You are asked to propose a strategy to bring the economy out of recession. Your goal is to avoid inflation and yet bring the economy to full employment as rapidly as possible. What will be your main strategy? Why? Use examples and give reasons to support your strategy.

Solution Preview

Suppose that you are the chief economic advisor to the president of the U.S. You are asked to propose a strategy to bring the economy out of recession. Your goal is to avoid inflation and yet bring the economy to full employment as rapidly as possible. What will be your main strategy? Why? Use examples and give reasons to support your strategy.
My main strategy will be to stimulate the economy by decreasing taxes and increasing government spending The effect of this measure will be more money in the economy and lower taxes, the demand for goods and services will increase. This will stimulate businesses and turns around the recession. However, this fiscal policy will cause pumping money into ...

Solution Summary

strategy to bring the economy out of recession is discussed very comprehensively in this explanation..

$2.19