Congratulations! You have been appointed an economic policy advisor to the United States. You

Congratulations! You have been appointed an economic policy advisor to the United States. You are told that the economy is significantly below its potential output and that the following will happen next year: World income will fall significantly and the price of oil will fall significantly due to lack of economic activities, as well as the availability of alternative and more sustainable energy sources (wind, solar, hydro, nuclear), and the U.S. is an oil exporter.
a) What kind of policies (under Fiscal policy) might you suggest to the government? Mention three under the Fiscal policies.
b) Consider the economic principle held by Classical economists: The economy always returns to its potential in the long run. What are Keynes’ criticisms of this economic principle?
 
Use as many economic principles (from the textbook and other sources) as you can in answering the questions.
As a guideline, each of the 10 points will be derived from the following:
Post your answer (400-500 words) to the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief “yes, I agree” or “no, I do not agree” postings are not adequate posts
Write in correct grammar; any errors will translate to a deduction in points.