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Unemployment has increased to 11.2% this month, higher than it has been for the last 28 years.
The inflation rate over the last year has been less than 1%.
1. The problem in the economy, Unemployment is very high
2. The monetary and fiscal policy to be used; Expansionary both
3. The tools of the policies and how they work to correct the problem; The tools would increase government spending, decrease taxes. Which would decrease unemployment, the money supply will rise
4. Any undesirable consequences that may arise when the Fed and/or the federal govt. implement the policy. Inflation will rise
5. In your discussion please discuss the branch of the govt. that will implement each of these policies (Federal government or the Federal Reserve.).
