Explain which method market or fiscal policy work better

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Reference no: EM1360050

Even though we have technically moved out of the most recent recession, the United States economy is continuing to struggle. Assuming that we were in an inflationary gap during 2005 -2006 which was followed by a recessionary gap, explain how the market, if left alone, would move us out of the recessionary gap. Also, explain all, if any, fiscal policy steps that can be used to lift us out of the recessionary gap. Which method, the market or fiscal policy, do you think would work better and why?

Reference no: EM1360050

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