Answer to Question #312742 in Law for Jack

Question

U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000.

i) Briefly explain and justify what prevailing situation was taking place in the year 2000.

(ii) Identify and explain two (2) fiscal policies and two (2) monetary policies that the US government may have used to correct this situation.