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Morgarella [4.7K]
1 year ago
8

Describe an economic problem the government in America is trying to solve. What solution to this public policy issue do you thin

k would work best?
Explain why this policy would be the best solution using Sowell's three questions.

1.)Why is your proposed solution the best response to this issue?
2.)What is the cost of your proposed solution?
3.)Is there evidence (statistics or statements from experts) from a credible source that shows your proposed solution would work?
ASAP!
Law
1 answer:
Misha Larkins [42]1 year ago
4 0

Inflation is an economic problem that the American government is attempting to remedy. The remedy is to implement a contractionary monetary policy.

  • The cost of employing contractionary monetary policy is that the country's unemployment rate may rise. Implementing a contractionary monetary policy is a common technique for managing inflation. A contractionary policy tries to reduce the quantity of money available in an economy by reducing bond prices and boosting interest rates. As a result, prices fall, inflation slows, and consumer spending falls.
  • Controlling the amount of money in the economy is a critical monetary strategy for combating inflation. If the money supply shrinks, demand for goods and services will fall, as will prices. Another method for reducing the amount of money in circulation is when the government withdraws specific coins or paper money from circulation.

As a result of the economic crisis and decreasing production, companies hire fewer personnel.

Thus this is the economic problem of America.

Refer here to learn more about inflation: brainly.com/question/777738

#SPJ1

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