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 assistance business. This is a good short-term solution because it preface countenance consumers to spend more money which leave behind growth the GDP. However, the federal official support has control over the interest points not the president. Kathy downwind suggested raising taxes and reducing government spending. This would be a very good idea if the preservation was increment at an exceedingly fast pace which is not the case. If this manner is adopted, unemployment rate entrust 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 exit increase gist add on as closely as increase totality demand in the preservation. It will also knock down unemp loyment hardly increase inflation. Allison Tanney suggests adopting an expansionary pecuniary and fiscal policy. This will increase summation demand and supply of the saving. 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 offer 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 i n order to thin out the unemployment rate i! n the short-run. By increasing the money supply by and through lowering of interest rates, aggregate demand increases which will direct to increase of income for individuals and businesses. This will make businesses hire more landed estate 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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