Recessions are caused by decreases in total spending. To get out of a recession, total spending needs
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Question:
Recessions are caused by decreases in total spending. To get out of a recession, total spending needs to stabilize and then increase.
- 1. One approach to stabilizing and increasing total spending during a recession is to have the government step in and start spending more money.
- What are the positives and negatives of this approach?
- 2. Another approach to stabilizing and increasing total spending during a recession is to allow the markets to recalibrate and reach a new equilibrium on their own, without government intervention. What are the positives and negatives of this approach?
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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