Use the data, discuss the Long run effects of economic policies of the country.
Now I need an analysis of the long run effect of the country.
Answer preview
fiscal policy tends to fix the economy by siphoning money in the private sector through raising taxes or cutting government spending, to regulate unstable production. The advantage of this fiscal policy, combined with expansionary monetary, will control the long-run inflation of the country. Another advantage is that the contractionary fiscal policy will result in control of the GDP-to-debt ratio of the country (Hayes, 2020). The disadvantage of these policies is that it will result into a slow growth rate of the private sector and low recovery from unemployment. Expansionary fiscal policy and expansionary monetary aims at increasing money sacculation in the economy to enable carrying out economic activity. The advantage of this will revive the economy faster and create a sustained revenue generation in the long run. Continue increased government spending and tax rate reduction can result in inflation in the long term.
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