Answer to Question #137842 in Macroeconomics for Kylie Engle

Question

Why did the U.S. GDP drop by nearly 33 percent in the second quarter? Should federal lawmakers provide businesses and consumers with further economic relief? If so, what sort of relief do you think they should provide?

Answer 1

US GDP dropped due to the order to stay at home which led to closing of most businesses.

Yes. So that they can be able to restore jobs and wage growth.

The tax codes should be loosened so that the businesses can realize full cost of their new investments.