It is the oil price crash of 2014, and the Norwegian government is fearing a recession. What policies can be enacted to avoid a recession?
In this scenario, it would be suitable to use some Keynes. There are two parts to this. The first part is lowering taxes and increasing government spending. The second part is decreasing interest rate. By having more money flowing in the economy, there should be an increase in demand (points to graph).
JR
Related Economics A Level answers
All answers ▸Discuss whether or not increasing competition in the provision of air transport services is beneficial to passengers.
When answering my essay question, what could be the key evaluative points when talking about fiscal policy?
Define the term ‘externalities’
Evaluate policies which a government in a developed country might pursue to increase the size and productivity of its working population. 15 marks