If I am the chief economic advisor to the president of the United States. and I am asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. my goal is to avoid an increase in inflation and bring the economy to full employment as rapidly as possible.
Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals? What should I believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Provide justification and examples to support any conclusions.