The government should act to counter the economic downturn. (Recessions or depressions)
over spending, especially spending, the deficit
is through taxation and interest rate policy
is intended to shore up demand,
historically, many economists believe. 'Speaking of the law, which states that supply creates its own needs,
the conditions of the Great Depression seemed to prove his claims
of severe depression, the response in the minds of decision makers, the economy will be affected
people. are likely to become more cautious and avoid spending money
, businesses will avoid investing even in environments with low
aggregate demand will weaken
, prices will drop and expectations of deflation is set. reduction in demand and investment.
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