Questions to answer:
- 1) That kind of the public policy is referred to in the article (contractionary or expansionary)? Explain.
- 2) When should this policy be introduced in the economy (regarding the stages in the business cycles)?
- 3) What are the actions in fiscal and monetary policies that should be considered during this stage of the business cycle? Provide examples and explanations.
- 4) What are the positive results of such a policy? You need to support your answer with the analysis of the main outcomes that are observable in the market.
- 5) What are the negative sides of such a policy in short and long run? Explain and support your analysis with some statistics.
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