Suppose that in 2 years, the unemployment rate has dropped from 8.5% to 4% and inflation has gone from 2% to 7%. The def
Posted: Wed Jul 06, 2022 6:17 pm
Suppose that in 2 years, the unemployment rate has dropped from8.5% to 4% and inflation has gone from 2% to 7%. The deficitis $200 billion. Labor productivity rates have fallen andlabor costs are going up by 8%. Real GDP is growing at 5%.What general fiscal policy would you advocate and why? Whatgeneral monetary policy would you advocate and why?