1) Explain the intent of the taxation policy decisions you made of your seven-year term. What were the macroeconomic principles or models that influenced your decision making?

2) Explain the intent of the taxation policy decisions you made of your seven-year term. What were the macroeconomic principles or models that influenced your decision making?

3) Identify the impact of your changes to the income and corporate tax rates. How were consumption and investment affected by your tax policy decisions? Explain these dynamics using specific macroeconomic principles from the course reading.

Table 1: Real GDP and Its Components 0) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 8506 67.7 55.0 51.7 57.1 57.9 62.7 Consumption 31.0 30 0 32.0 131.0 31.0 Government Expenditure 1808 15.0 1813 17.3 15. 174 Investment 36.7 2808 25.0 2518 28.4 Exports 25.0 217 26.8 29.1 293 Imports 115.2 100.0 101.4 106.0 108.7 111.0 1128 Nominal GDP 111.0 100.0 105.1 107.1 107.1 109.9 Real GDP Copy Table 1 to clipboard Table 2: Other Macroeconomic Data 0) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year G Year 7 110.9 116.1 122.0 127.5 132.0 137.4 105.1 Capital Stock USS (in billions) ITO 3.4 3.5 3.1 2.5 29 Productivity Growth % 19.0 101.3 101.0 101.6 101.2 10020 98.3 Consumer Price Index 10010 10120 102.7 101.6 102.1 99.7 98.5 9918 Exchange Rate Index 21 1.0 0.4. 2.0 1.0 Trade Balance US$ (in billions) 26.2 28.5 24.0 2758 20.7 22.3 21.7 27.0 Income Tax Revenue USS (in billions) 2.4 2.3 2.8 3.4 21 Corporate Tax Revenue US$ (in billions) 7.0 0.5 0.6 -24 Government Budget Surplus (Deficit) USS (in billions) 804 75.1 E2.B 12.3 31.7 84.1 Government Debt USS (in billions) BOTO 80 7 86.3 71.8 76.2 74.1 72.4 73.1 Government Debt as % of GDP 5 Copy Table 2 to clipboard Table 3: Economic Environment, Decisions, and Results 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 2.4 2.E 2.0 1.0 1.4 2 0 Global Economic Growth Forecast 1012 10 0.0 10 0TO 102.4 39.2 101.4 Consumer Confidence Index 3.0 5.1 4.5 510 3.5 4.5 Interest Rate % 24.0 2810 20.0 21.0 20TO 25.L 25.0 21.0 Income Tax Rate % 21.0 2510 30.0 18 0 30.0 28TO Corporate Tax Rate % 31.L 31.0 30.0 31.0 3210 310 Government Expenditure USS (in billions) 2.4 1.0 2 5 Real GDP Growth % 5.6 508 5.0 BTR Unemployment Rate % 0.6 04 2.0 Inflation Rate % -04 6.9 0.5 0.5 Budget Surplus (Deficit) as % of GDP