00:01
Okay, so here in a question in a different cases, we need to provide the government action.
00:06
So number one to bring down inflation rate to bring down inflation rate at this creationary fiscal policy discretionary fiscal policy.
00:26
So here the government can implement government implement contractionary fiscal measure contractionally fiscal measure such as reduce reduce government spending and increase texas to decrease the aggregate demand and curb inflationary pressure second in this great discretionary monetary policy in this the central bank can employ contractionary contractionary monetary measure who central bank.
01:33
So how such as increasing interest rate increasing interest rate or reducing money supply by reduce money supply to decrease borrowing and spending thus reducing inflationary pressure.
01:58
So this is to bring down inflation rate.
02:01
Now, the second case will be to move economy out of recession.
02:12
So at the discretionary fiscal policy what the government can do to move out the economy out of the recession.
02:26
So the government can implement pensionary expansionary fiscal measure such as increase government spending increase government spending and reduce texas now for what can they do in the for move out the recession discretionary monetary policy.
03:04
So here the central bank can employ expansionary monetary measures.
03:18
I use the short forms here such as lowering the interest rate lower interest rates or increasing money supply to lower borrowing cost and promote investment and spending does the stimulate economic activity.
03:41
So these can done by the central banks and the government's in the different situations.
03:48
Now also they ask you no question to lessen economic hardship faced by those who lost their job in times of recession.
03:55
What the government can do...