Purchase Solution

strategy to bring the economy out of recession

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

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

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 provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • employment, recession, president, inflation, economic, strat

    190839 Economic recession Suppose that you are the chief economic adviser to the President of the U.S. You are asked to propose a strategy to bring the economy out of recession.

  • Macro-economics

    327888 Macro-economics 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.

  • National financial policy programs to address problems.

    The stabilizers bring the country out of recession by using the surplus (extra) as a deficit, which drops inflation in the economy. The main national policy program to reduce unemployment is through an expansionary policy.

  • nominal GDP and real GDP

    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?

  • Keynesian perspective with respect to deficit spending

    Because of the multiplier effect and lag time, government spending is the most efficient of these ways to bring the economy out of a recession or depression.

  • Federal Reserve tools

    When the economy is a recession the Fed tends to lower the discount rate, and the Federal Funds rate, and as of now their target Federal Funds rate is 0-0.25% - the lowest ever!

  • Budget Deficit Rationales

    Because of the multiplier effect, government spending can bring the economy out of a recession or depression.

  • Relation Between Fiscal and Monetary Policy

    In case the central bank increases money supply it will speed up the move out of recession, on the other hand if they reduce money supply now that will push the economy further into recession.

  • Strategic Hospitality Management

    For example, many organizations are currently out of business due to the current state of the economy (i.e. the recession); unfortunately they were unable to anticipate such a drastic downturn, resulting in a decrease in profitability and possible business

View More Related Solutions