ECON!!! NEED HELP QUICK 50 PTS!!!
For the next two questions, come up with a scenario, using your knowledge of fiscal policy, that could help the government out of the situation described. Your answer must include: Chosen fiscal policy, effects on GDP and affected components ot GDP. (4 points each)
The stock market has crashed and nobody is out spending money in stores due to fear of economic collapse. You have been asked by the government to use your knowledge of fiscal policy to help them out of this crisis. In your solution make it clear your recommendation and explain how this recommendation will help, covering all criteria above.
Your answer
The government has created too many jobs by trying to get us out of the recession. Now there is too much money in circulation causing massive inflation.
The government has turned solely to you as they believe your knowledge of fiscal policy is unmatched. With your deep extensive knowledge of fiscal policy, help guide this government, recommending a solution with an explanation as to how this recommendation wil help, covering all criteria above.