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 function business. This is a good short-term solution because it preface advertise consumers to spend more money which forget growth the GDP. However, the federal official shyness has control over the interest points not the president. Kathy lee suggested raising taxes and reducing government spending. This would be a very(prenominal) good idea if the preservation was increment at an super fast pace which is not the case. If this manner is adopted, unemployment rate pinch 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 result increase gist emerge as comfortably as increase totality demand in the saving. It will also knock down unemployment hardly increase inflation. Allison Tanney suggests adopting an expansionary pecuniary and monetary policy. This will increase summation demand and supply of the economy. 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 purport the president to adopt expansionary fiscal policies by either increase 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 curve the unemployment rate in the short-run. By increasing the money supply by dint of and through lowering of interest rates, aggregate demand increases which will lead to increase of income for individuals and businesses. This will make businesses hire more area leading to increase in output produced which will reduce unemployment. This will ultimately increase GDP an d shift the economy from a recession to a re! covery.If you want to get a full essay, order it on our website: OrderCustomPaper.com

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