Wednesday, August 10, 2011

Pls help!!if economy is below full employment,how would monetary,fiscal policy,laizze fair policy affect it?

Monetary policy does not necessarily affect unemployment. The government may lower business tax to encourage businesses to hire more people with fiscal policy, but if consumers aren't spending, it would be pointless anyway. Laissez-faire is not so much a policy as it is a philosophy. But philosophy would call for no government intervention, and to let the "free-market" run its course.

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