policies for economics

policy for decrease inflation

increase interest rates (contractionary monetary poilicy as you decrease AD)

policy to fight deflation

decrease interest rates (expansionary monetary policy as you increase AD)

policy for SR unemployment (cyclical / DEMAND DEFICIENT)

deecrase interest rates (expansionary monetary policy as you aim to increase AD)

policy for LR unemployment (structural)

lower unemployment benefits (market-based and new classical approved)

policy to solve inequality

investment in human capita (education) ( interventionist)

policy to encourage people to do exercise

subsidy

policy to reduce pollution

subsidies for green energy resources)

policy to adress negative externality of consumption

pigouvian tax imposed on the demerit good

policy to adress negative externality of production

regulation (command and control solution)

severely restrict the activity=> increase th cost of production for firms=> switch to greener energy