Answer to Question #203741 in Macroeconomics for Adnan

Question

what are the possible ways that economists suggested to overcome economic slowdown

Answer 1

Cutting interest rates

Makes borrowing less expensive and should raise enterprises' and households' disposable income, resulting in increased spending.

Income tax cuts

Increasing the disposable income of workers, encouraging them to spend.

IMF bailout

The IMF provides funds to help countries regain trust and undertake structural adjustment measures such as greater tax collection, privatization, and price liberalization.