Thursday, November 24, 2011

Using the information below, what real life example can you give about Stabilizing the Economy?

Use government budgets and/or the money supply to promote economic growth, control inflation, and reduce unemployment.|||You can rise the goverment budget to rise the economic growth like in world war II, you can reduce money supply to control inflation, you can use the german case after WWII too for this one where the goverment printed so much money it caused an hyperinflation. As for reducing unemployment, during the great depression the us goverment hired teams of people. The first team would break the streets and the second would pave them. They were all employed by the goverment which means it rised the goverment budget while effectively reducing unemployment and reactivating the economy.|||enslave the poor. then eat their babies. this would account for poverty and hunger. also boost the economy.

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