What is the best approach to managing the economy

Reference no: EM133380744

Questions: What is the best approach to managing the economy, supply-side or demand-side economics?

There are two schools of thought on how to managing the economy. The first is demand-side economics which also the Keynesian approach. This approach maintains that the demand for products and services drives the economy as such economic policies should focus on the aggregate demand curve. The other approach is called supply-side economics or more popularly referred to as Reaganomics. In this trickle-down approach, it is postulated that the production of goods and services is what drives the economy with the focus on the aggregate supply curve. Both fiscal and monetary policies have the potential to stimulate change in either the aggregated demand or the aggregate supply curves.

In your initial post defend which approach should be used to (ensure to include in your subject line, which approach you are defending):

Restore the economy that is in a recession.
Identify the challenges that may be encountered in the approach you selected.
Your initial post must include one source using correct reference.

Reference no: EM133380744

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