Question

Please provide your value added analysis regarding JFK's fiscal policies to handle the economic troubles he faced. Supply a MACRO S & D graph that supports your analysis paragraph.

The graph is very important. Thank you for spending your time working on this.

Answer 1

Answer - During the Rule of JFK , the rate of unemployment was as high as 6 % in the economy . The economy had recently faced a recession in 1958. The goal was to increase the emoloyment and growth in the economy and take the sluggish economy out of the very slow growth. Hence in 1964 , the Fiscal reforms were made and Revenue Act of 1964 was passed in which the considerable tax cuts were made in order to increase the disposable income and the investment in the economy. These tax cuts provided the incentive of the increased consumption and greater investment thus leading to the rise in the employment levels and increasing the growth rate of economy. This can be depicted with the help of following graph -