Asked Oct 30, 2019

Give a solution to fix a serious national recession


Expert Answer

Step 1

The recession is a situation of declining the Gross Domestic Product of the economy due to the declining trade or other economic activities. When there is a recession experienced by the economy, the economy would experience the fall in the sales revenues of the businesses which makes the businesses from expanding during the period.

Step 2

The recession causes the reduction in the aggregate demand of the economy due to the lower revenue generated by the businesses in the economy. Thus, the money supply reduc...

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