What can be the policy solution for a
negative demand shock?

Question

Accepted Answer

Fiscal
policy approach to dealing with the negative demand shock can be to increase government spending.

Accepted Answer

Fiscal policy approach to dealing with the negative demand shock can be to increase transfers to low-income households.

Accepted Answer

Monetary policy approach to dealing with the negative demand shock can be to decrease policy interest rate.

Answer

Monetary policy approach to dealing with the negative demand shock can be to decrease exchange rate.

Answer

Fiscal policy approach to dealing with the negative demand shock can be to increase taxation.

Crowdly