Question

what policy mix would you advise your president to implement to solve umemployment and inflation

Answer 1

A mix of demand and supply side policies can help solve the unemployment and inflation simultaneously. The demand side policies would include the policies that would incentivize the firms to produce more. So by increasing the expenditure by the government which would further increase the aggregate demand in the economy and so would make the firms to produce more which ultimately would increase the demand of the labor by the firms thus reducing unemployment. On the supply side, the expansionary monetary policy would reduce down the rate of interest in the market, making the loans cheaper. The cheaper loans would thus stimulate investment in the economy raising the demand for the labor, thus reducing the unemployment.