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Evaluating the Effectiveness of Stimulus Plans on Unemployment and GDP

The current stimulus measures are insufficient in combating rising unemployment and fostering economic growth. While the intention is to stabilize the economy, real impact hinges on innovative solutions such as tax credits for businesses that shorten hours instead of resorting to layoffs. Understanding economic basics—specifically supply and demand dynamics—reveals that increased demand leads to GDP growth. With unemployment at 9.1%, a comprehensive strategy is imperative to reduce it and uplift the economy, as inadequate stimulus may leave us in a precarious situation.

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Evaluating the Effectiveness of Stimulus Plans on Unemployment and GDP

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  1. Stimulus really helping?

  2. = the now Unemployment GDP Alternative methods: Tax credits: for business that shorten hours rather then firing or regulating the money to go to U.S services instead of exports (that go over seas). By Natalie White

  3. Stimulus plan not enough!

  4. $ comes from our packet Where the get out of free jail card when you really need it?

  5. Doesn’t help U.S Stimulus is not enough!

  6. Facts: • To understand how our economy works you first have to understand the basics. If demand is high and supply stays the same then equilibrium price and quantity will increases. So then if supply increases and demand stays the same then equilibrium price and quantity will fall. Supply and demand have many different aspects that influence them. So if demand is up and people are consuming then GDP(gross domestic product) increases.

  7. NOW 9.1% UNEMPLOYMENT RAISE GDP BY 300 BILLION A YEAR TO REDUCE UNEMPLOYMENT BY 1%!

  8. Work Cited/ Interesting sites: • http://krugman.blogs.nytimes.com/2009/01/06/stimulus-arithmetic-wonkish-but-important/ • http://www.bls.gov/cps/cps_htgm.htm weekshttp://useconomy.about.com/od/economicindicators/p/unemploy_rate.htm • http://change.gov/agenda/economy_agenda/ • http://www.tradingeconomics.com/united-states/unemployment-rate (pic) • http://www.nytimes.com/2011/08/05/business/economy/double-dip-recession-may-be-returning.html • http://www.newenglandpost.com/2011/09/28/coins-cash-stimulate-economy/ • http://rankovnik.cz/krz-monopoly-money-template/ (pic)

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