Unemployment and Inflation can be caused by many different things but normally they follow the business cycle with high inflation in times of boom and high unemployment in times of recession. ... Also, your government needs to consider lowering taxes or finding areas to cut taxes in order to shift the aggregate demand curve to the right. Perhaps initiating some type of government stimulus plan would be significant in helping the economy return back to pre-recessionary times. The key to achieving the best outcome is understanding what proportion of the government spending increase or tax cut is...

• Word Count: 1592
• Approx Pages: 6
• Grade Level: High School