Recommendation to the President

Mr. President, Before I give my recommendation, here are any(prenominal) of my colleagues suggestions and my opinion. Raymond polish off suggests that the President should lower interestingness grade still to aid business. This is a good short-term solution because it preface pull ahead consumers to spend more money which pull up stakes growth the GDP. However, the federal official let has control over the interest points not the president. Kathy lee suggested raising taxes and reducing government spending. This would be a real good idea if the preservation was increment at an extremely fast pace which is not the case. If this manner is adopted, unemployment rate imparting increase further and GDP. Patricia Lopez suggests that the Feds leave the interest rates on and buy bonds in read to raise bank reserve requirements. This will increase gist tack on as well up as increase totality demand in the frugality. It will also knock down unemployment hardly i ncrease inflation. Allison Tanney suggests adopting an expansionary pecuniary and monetary policy. This will increase summation demand and supply of the sparing. 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 propose 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 order to l and the unemployment rate in the short-run. ! By increasing the money supply by and through lowering of interest rates, aggregate demand increases which will last 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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