Question

1. US Economy suffers serious recessions , high unemployment and huge trade deficit now. What will you do to stabilize US economy if you are US president?

*Give me some advice pls.

Answer 1

In the US , there is depression due to outspread of corona virus. There is decrease in income, output and employment in an economy. Aggregate demand is also less.

In this situation US government should decrease taxes. Because decrease in taxes will increase disposable income and there will be increase in aggregate demand and due to that production will increase and employment will also increase and trade deficit will remove due to increase in productivity.

Secondly President should increase in government spending to increase income , output and employment , through which depression will remove.

Thirdly, in order to boost confidence of private investors , president should provide stimulus packages and with that investment will increase and employment and real income will increase . Due to all, there will be control over the depression.

These are the methods that US president should follow to correct the depression situation.