HW- The immediate problem facing the UK economy is a large output gap and decline in aggregate demand.

I did 2 hours of research to come up with this idea. But i'am a bit concerned about it.(

I think UK needs to lower the prices for goods. But the prices are already low, but they should be lowered a bit more. I think tightening monetary and fiscal policies wont work. If we'll think of this, in a business way.... We should do more advertising, UK needs to supply their product to other countries, so the exports will be more. For example if firms and enterprises will do more advertisements(for example offering 1 supply for the price of 3, this should help). People would buy more products and goods and the cost of labor should be decreased which will make the goods and services much more cheaper.

This is not all, i think we should use Keynesians theory to accomplish the goals. Fixed investment should fall. People needs to invest less. And excess of savings causes interest rates to fall and then we will get rid of excess supply. So the savings will be equal to investment. The interest-rate fall prevents that of production and employment. People are gonna spend more. If we don't wanna cause recession again we should stabilize government spendings, cunsumption, Investment, and exports. While getting rid of execc supply we can improve the economy too.