Question

In: Economics

When faced with a recession, using supply side policy what should the government do?

When faced with a recession, using supply side policy what should the government do?

Solutions

Expert Solution

If there is a recession in the market then the government should reduce the taxes of the firms, reduce the rules and regulations that they have to comply with, this will increase the profit, and investment in the market, thereby increasing demand and ending the recession in the market.


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