Recommendation to the President

Mr. President, Before I give my recommendation, here are any(prenominal) of my colleagues suggestions and my opinion. Raymond burke suggests that the President should lower interestingness grade still to ease business. This is a good short-term solution because it preface promote consumers to spend more money which bequeath growth the GDP. However, the federal go for has control over the interest points not the president. Kathy leeward suggested raising taxes and reducing government spending. This would be a in truth good idea if the preservation was increment at an highly fast pace which is not the case. If this manner is adopted, unemployment rate leave alone increase further and GDP. Patricia Lopez suggests that the Feds leave the interest rates along and buy bonds in read to raise bank reserve requirements. This leave increase gist emerge as fountainhead as increase totality demand in the economic system. It will also knock down unemployment hardly incr ease inflation. Allison Tanney suggests adopting an expansionary pecuniary and financial policy. This will increase summation demand and supply of the parsimony. Both policies will eliminate unemployment but make the economy grow at a speedy pace which will increase inflation.

As the senior frugal advisor, I would declare oneself the president to adopt expansionary fiscal policies by either change magnitude government spending or change magnitude taxes in order to increase aggregate demand to aggrandize output. Moreover, I would also encourage the president to adopt the Keynesian monetary transmission in or der to sicken the unemployment rate in the ! short-run. By increasing the money supply by dint of and through lowering of interest rates, aggregate demand increases which will kick the bucket to increase of income for individuals and businesses. This will make businesses hire more commonwealth leading to increase in output produced which will reduce unemployment. This will ultimately increase GDP and shift the economy from a recession to a recovery.If you want to get a full essay, order it on our website: OrderCustomPaper.com

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