In 2010, many high-income countries will be focused on the short-term economic horizon due to aggressive and often controversial steps governments took to jump-start these economies out of severe recession. Considering the economic challenges that result from these policies, which of the following actions would be most advisable?

A. extricate themselves from the recession and the policies adopted in fighting that recessionB. to continue to temporarily disregard the foundations for future long-term growthC. find niches that they are well-suited to fill in the global networks of economic productionD. build upon or copy technologies and industries developed by other technology leaders

A. extricate themselves from the recession and the policies adopted in fighting that recession

Explanation:

The United States, Western Europe, and Japan had great financial crisis and deep recession, and suffered from the after-effects of the recession. These effects included increased unemployment rates which could linger for several years. These countries had to focus on the short term rather than the long term. Some of the economies took aggressive and controversial steps by running very big deficit budget as part of expansionary fiscal policy. The countries adopted combination of lower government spending and higher taxes.

The action most advisable would be to

extricate themselves from the recession and the policies adopted in fighting that recession

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