Government’s reaction to changes in the gross domestic cycles is critical to the survival of a country’s economy. Implications of government’s action in policy making to tackle recessionary states in the economy have far-reaching consequences. There are few studies that scarcely illuminate the problem of whether the government should use economic stimulus to aid a country regain economic strength during times of recession.
Economic stimulus includes fiscal policies like increasing government deficit expenditure, and government buying of bonds and securities in the open market, and monetary policies like lowering interest rates to increase borrowing, quantitative easing or central banks printing more money to increase aggregate demand, and allowing for tax cuts. The government fund created is used to revive specific private sector industries (Woldesemayat 7).
Waweru, A. (2021). Government Use of Economic Stimulus to Aid the Country during Times of Recession. Afribary. Retrieved from https://afribary.com/works/government-use-of-economic-stimulus-to-aid-the-country-during-times-of-recession
Waweru, Ashington "Government Use of Economic Stimulus to Aid the Country during Times of Recession" Afribary. Afribary, 02 Jul. 2021, https://afribary.com/works/government-use-of-economic-stimulus-to-aid-the-country-during-times-of-recession. Accessed 24 Jul. 2021.
Waweru, Ashington . "Government Use of Economic Stimulus to Aid the Country during Times of Recession". Afribary, Afribary, 02 Jul. 2021. Web. 24 Jul. 2021. < https://afribary.com/works/government-use-of-economic-stimulus-to-aid-the-country-during-times-of-recession >.
Waweru, Ashington . "Government Use of Economic Stimulus to Aid the Country during Times of Recession" Afribary (2021). Accessed July 24, 2021. https://afribary.com/works/government-use-of-economic-stimulus-to-aid-the-country-during-times-of-recession