During high periods of unemployment countries should focus on stimulating investments in the economy. this can be achieved through an expansionary fiscal policy that increases money supply in the economy, through tools such decreased taxation,reduced government borrowing and increased government expenditure.
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The Marshall Plan<span> (Or </span>European Recovery Program(ERP)<span>) was an American initiative to aid </span>Western Europe<span>, in which the </span>United States<span> gave over $13 billion</span><span> in economic support to help rebuild Western European economies after the end of </span>World War II<span>.
The plan was in operation for four years beginning on April 1948.
The goals of the United States were to rebuild war-devastated regions, remove </span>trade barriers<span>, modernize </span>industry<span>, make Europe prosperous once more, and prevent the spread of </span>communism.<span>The Marshall Plan encouraged an increase in </span>productivity<span>, </span>labour union<span> membership, as well as the adoption of modern business procedure.</span>
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Explanation:
Marshall plan was also knows as European Recovery Program. It was the plan offered by USA to rebuild the economy of the allied countries after the World War Two.
One of the main reasons why it was offered was to prevent the countries from falling prey to communism. It was enacted in 1948 and gave more that 15 billion dollars to the allies. President Harry Truman signed it on April 3, 1948 and it helped 16 Europeans countries including Netherlands, Belgium,France and Britain.
After the second world war US had no intention too sent its troops into Eastern Europe where Soviet Union was supporting guerrilla movements and occupying countries. So It pursued the policy of granting aid too various countries so as to prevent a communist takeover and confine the communism to its current borders. This policy came to be known as Truman doctrine.
And with the Marshall plan it advanced the Truman doctrine by announcing the the humanitarian aid was the sole purpose of the Marshall plan. It also offered aid to the the communist countries of East Europe.