Classical economist approach


Assume that there is concern that the economy is not recovering from the current recession due to a high unemployment rate. Consequently, the President and Congress are considering the passage of another stimulus package for $200 billion. This package will be targeted towards decreasing unemployment and maintaining the current level of low inflation. How would you structure such a stimulus package? What would a classical economist's approach to this problem be, and how would it differ from a Keynesian's approach? Explain your answer and justify your conclusions.

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Macroeconomics: Classical economist approach
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