Question
1. GDP: The GDP is contracting. Due to the decline in GDP from January to April, indicating a decrease in the overall production of goods
1. GDP: The GDP is contracting. Due to the decline in GDP from January to April, indicating a decrease in the overall production of goods and services in the economy.
2. Unemployment: Unemployment is increasing. As the unemployment rate rises from 10% to 20% during this period, it shows a growing number of people are unable to find employment, demonstrating economic contraction.
3. Inflation: Inflation is expanding. The increase in the inflation rate from January to April shows a rise in overall price levels in the economy, indicating an expansionary phase.
- Based on your diagnosis, will you use fiscal policy tools to grow or slow the economy?[highlight the correct answer in the brackets then fill in the blank]
I will use fiscal policy tools to [grow] the economy because ________________________. |
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