Answer to Question #203742 in Macroeconomics for Adnan

Question

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

Answer 1

i) Cutting interest rates.

Reduces the cost of borrowing and should improve enterprises' and consumers' disposable income, resulting in increased spending.

ii) Supply-side policies.

Long-term policies aimed at increasing the economy's production and efficiency.

iii) New infrastructure investment by the government (e.g., the New Deal in the 1930s) serves to increase demand and create jobs.