-- written by Daurie Augostine

Sunday, August 18, 2013

Name that Graph!

With respect to individuals and communities, stabilization policy is not only a kinder approach, but the goal is to "smooth out" business cycles, make recessions less severe and that not only helps private citizens, but businesses too!

So, if deficits increase automatically during recessions, along with the unemployment rate (and a host of other problems such as the poverty rate, the crime rate, the suicide rate, etc.) then the opposite should happen during times of economic growth.  So, in your opinion, how do we encourage growth?

Some of you might recall the following graph:


                                                          Source:  Google Images