Question

Suppose the economy is experiencing a recession with high unemployment. With a goal of increasing GDP back to the full employment level:

What would a conservative economist suggest policy makers do as the correct course of action? (Think of those that may align their thinking to that of Say, who by the way, are referred to as classical liberals.)

Answer 1

Say said, "Supply creates its own demand"

According to this theory the conservative economist would assume that higher investment and government will pump up demand by creating more supply of goods in the market a low prices. This very simplistic understanding of recession will lead to suggestions like: Create more funding for businesses and increase government spending so as to increase demand and market sentiment for spending.