Question

The country is in a recession. The President of the United States has ask your opinion as to what he/she can do to get us out of the recession. In your response:

a) First answer as classicalist economist
b) Then answer as a Keynesian economist.

2. The country is experiencing inflation. The President of the United States has ask your opinion as to what he/she can do to reduce inflation .In your response:

c) First answer as classicalist economist
d) Then answer as a Keynesian economist.

Answer 1

The country is in a recession. The President of the United States has ask your opinion as to what he/she can do to get us out of the recession.
a) As classicalist economist he/she can decrease taxes to increase aggregate demand.
b) As a Keynesian economist he/she can increase government purchases to increase aggregate demand.
2. The country is experiencing inflation. The President of the United States has ask your opinion as to what he/she can do to reduce inflation.
c) As classicalist economist he/she can increase interest rates to decrease aggregate demand and decrease inflation.
d) As a Keynesian economist he/she can decrease government purchases to decrease aggregate demand and decrease inflation.