When the Economy Is in Recession, Does the Fed Want

question 178

Essay

When the economy is in recession, does the Fed want to raise the interest rate so as to increase aggregate demand and increase real GDP? Explain your answer.

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Definitions:

Unmet Needs

The gaps in the market where demand for a product, service, or solution exists but is not currently being met by the supply.

Entrepreneurs

Individuals who undertake the creation, organization, and management of a business venture, along with its risks, in order to make a profit.

Marketplace

A platform or environment where commercial transactions between buyers and sellers take place.

Opportunity Recognition

The ability to identify a viable idea or market gap that can be exploited for business or entrepreneurial purposes.