Question

Choose one economic policy, which you thinks could deeply alter the course of our economy - good or bad. Explain

Answer 1

I live in India and here the economy is agrarian-based. Most of the people make their bread and butter from doing farming activities. Due to this, the economy is gripped into circles of poverty and unemployment with a low per capita income.

In my opinion, strict fiscal actions need to be taken by the government to alleviate the condition. The government should intervene and increase its spending on public infrastructure. This is called Expansionary Fiscal Policy.

The would would create enough employment opportunities in the agrarian as well as in other sectors of the economy. The per capita income will increase which will boost the aggregate demand. This policy might not impact the economy in the short run but in long run the benefits will be seen and the economy gradually approach to Full Employment level of Output.