Does the government need to intervene to fix

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To fix the disruption in the economy, governments take actions to stimulate aggregate supply through stimulating aggregate demand. A rise in aggregate demand leads to an increase in aggregate supply, thus higher demand for labor and lower unemployment rates. As of June 2022, GDP in the USA declined by 0.6%. As of May 2022, the Unemployment rate was 3.6%, and the Inflation rate was 9.1% in April 2022.

Question 1: Does the government need to intervene to fix these indicators? If so, what policy is more appropriate, fiscal or monetary? And why?

Reference no: EM133264920

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