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ADM 614 Week 6 Assignment, The Impact of Economic Policy on the Market

The Keynesian model of economics entails total spending in the economy and its effects on output and inflation. This theory revolutionized economic thinking after the Great Depression. By challenging the idea that free markets would automatically provide full employment provided that wage demands remained flexible. This theory supports government interventions through public policies geared towards full employment and price stability (Jahan et al., 2014). At the beginning of Nixon’s term, inflation was ……rather than balancing the national budget. After a failed attempt to tighten money supply, the administration implemented fiscal policy solutions to revamp the economy from a recession. The New Economic Policy was …..in August 1971 to balance domestic wage and price controls. However, Nixon’s plans failed owing to a combination of failure to obtain extra revenue ……………….Continued (07 Pages with References)

adm 614 week 6