fiscal policy 11

/in /by

Your initial post should be 75-150 words in length.

When the economy is in a recessionary mode, aggregate demand shifting inward is often the culprit. Deflationary pressures on prices ensue, and output falls, causing problems like higher unemployment and contraction of the economy.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

When the economy is in a recessionary mode, what will likely be the actions by government using fiscal policy? Is it better to concentrate on aggregate demand or aggregate supply? Why?

Review how and why aggregate demand and aggregate supply shift inward and outward. English economist John Maynard Keynes developed a model that provides an explanation for the high and prolonged rate of unemployment of the Great Depression. According to Keynes, what are the major sources of economic instability? Fiscal policy is spending and taxation of the executive branch of the federal government; in recessionary times, what initiatives in spending and/or taxation are going to help the economy?

Please provide original work. No plagiarizing.

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"