Question

Do you think our government should focus on the long run or the short run? Why do you feel that way? How do you think policies would change if the government focused only on the long run?

Answer 1

Government should focus on long run policies as it would lead to healthier and stable economy. The government policies are fiscal policies which includes right taxations which would motivate the economy to increase aggregate demand so that the aggregate supply increases, unemployment decreases, inflation would be at a standard level and real GDP increases. These policies would work towards checking inflation and avoids booms and bursts in the economy so that a stable economy prevails.