"Effects of Government Policies on Recessions: Fiscal and Monetary Policy Impact on Unemployment, Poverty, and Inequality."

Abstract

This study investigates the impact of government policies, specifically fiscal and monetary policies, on preventing and mitigating economic recessions, focusing on their effects on unemployment, poverty, and inequality. By synthesizing existing literature on the subject, the study employs a quantitative research design to analyze the relationship between government interventions and economic outcomes during periods of recession. The findings suggest that both fiscal and monetary policies play crucial roles in stabilizing economies during downturns, with fiscal policy primarily addressing demand-side factors and monetary policy targeting supply-side dynamics. Through an examination of various policy measures, such as government spending, taxation, interest rates, and money supply adjustments, this study identifies the mechanisms through which these policies influence unemployment, poverty rates, and income inequality. The research underscores the importance of coordinated policy responses in mitigating the adverse effects of recessions on vulnerable populations. However, the study also acknowledges the limitations of government interventions and highlights the need for further research to refine policy approaches and enhance their effectiveness in addressing economic challenges.