Suppose the economy is experiencing a recession with high unemployment. With a goal of increasing GDP...

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Suppose the economy is experiencing a recession with high unemployment. With a goal of increasing GDP...

Suppose the economy is experiencing a recession with high unemployment. With a goal of increasing GDP back to the full employment level:

What would a liberal economist suggest policy makers do as the correct course of action? (Think of those that may align their thinking to that of Keynes, a more modern way of using the term liberal.)

business economics

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Answer 1

Answer #1

A liberal economist would recommend an expansionary fiscal policy. Therefore, such an economist would suggest cutting taxes or increasing government spending or doing both.

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Answer 2

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Suppose the economy is experiencing a recession with high unemployment. With a goal of increasing GDP...

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