ch has to do with business cycles
like recessions and expansionary times. Is there anything the Federal
Government can and should do when certain industries are hit hard with
unemployment' The government does not have to adopt a protectionist type
attitude by implementing such tactics such as tariffs and quotas. These
types of tactics hinder international trade and drag an economy down by
creating trade wars with other countries, making products more expensive to
US consumers, and driving down US exports to foreign consumers. As I will
show in this paper, the government can use monetary and fiscal policy as
well as changes in the discount rate and reserve requirements to maintain
GDP growth. Money is like oil in an engine. An economy must circulate
enough money and increase the money supply slowly to grow the economy.
Productivity of labor which can be defined as the amount of output per
hour of work can effect the unemployment rate. In many instances
...