Effects of the strategies on both gdp and unemployment

Reference no: EM13162561

One government strategy to provide for economic stability and encourage economic growth is to provide tax reductions or tax incentives for individuals and businesses. An alternative approach is to increase government spending to accomplish these goals.

Which strategy do you believe would be more effective in the short term for accomplishing these goals? Which strategy do you believe would be more effective in the long term? Include in your answer a discussion of the benefits and drawbacks of both alternatives and include an analysis of the effects of the strategies on both GDP and unemployment. Justify your conclusions.

Reference no: EM13162561

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