The Council of Economic Advisers requests that you carefully describe and explain at least two long-run macro policy options that the President can consider to boost productivity growth and potential GDP. These policies should shift the Long Run Aggregate Supply curve (LRAS) out over time. Please note that fiscal and monetary policies are not long-run policies. Discuss which perspective was more useful in developing your two policy options: the Keynesian Perspective or the Neoclassical Perspective? Utilize the AD/AS framework in framing your answer.

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Macroeconomics takes an overall view of the economy which means that it needs to juggle many differe... View the full answer