Based on your knowledge of the Great Depression in the 1920s-1930s, if you were an economic advisor to the federal, state, or local government executive, write two grammatically correct paragraphs how you would advise the president, governor, or mayor on managing their economies for the next twelve months

Question

Maribel Daugherty

History

13 September, 05:18

Based on your knowledge of the Great Depression in the 1920s-1930s, if you were an economic advisor to the federal, state, or local government executive, write two grammatically correct paragraphs how you would advise the president, governor, or mayor on managing their economies for the next twelve months

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Answers (1)

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Ivan Goodwin · Answer 1

See the explanation below.

Explanation:

Since there was a huge fall that was noticeably lower than average in income and employment during the Great depression as a result of reduced aggregate expenditure, I will recommend to the state government to run budget deficits for the next twelve months.

Budget deficits can be run either by increasing the government expenditure by more than the current government revenue, or by reducing tax. This would encourage the private sector to invest in order to continue to produce at the normal production level. The eventual result or effect of this will then bring the economy out of recession.