Change the rates and GDP depending on the scenario

Welcome to Econland Your role: You are responsible for managing the economy of Econland, a medium-sized country, for a period of seven years. You must make monetary and fiscal policy decisions that make Econland's population happyboth by maximizing real GDP growth and by keeping the unemployment rate and budget deficit as low as possible. Inflation also needs to be low, but remain positive-deflation is destabilizing to an economy. Along the way, you will be tasked with analyzing economic growth forecasts and will receive yearly updates from your policy advisors. Your yearly decisions: Interest rate Income tax rate Corporate tax rate Government spending How you will be measured: GDP growth Unemployment rate Inflation rate Budget surplus (or deficit) Your goal: You will receive approval points from your citizens each year (0-100 points). Your goal is to finish year seven with the highest possible approval rating. Good luck! Year 1 Economic Forecast Decisions Interest Rate 3.0% 0% 7% Last year's interest rate: 3% Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Last year Econland's GDP was US$100 billion, making the economy roughly the size of Puerto Rico or Hungary. Econland is affected by global economic conditions, but it is too small to impact the global economy in return. Exports and imports both account for 25% of GDP. Last year, the world economy did well and Econland experienced solid economic growth (2.4%). Unemployment is low (5%), and inflation (at 2%) and the budget deficit (2.8% of GDP) are under control. Total government debt is 60% of GDP. The outlook for next year is moderately positive, with the International Monetary Fund (IMF) predicting world economic growth of 2.4%. The Consumer Confidence Index is at its long-term average of 100. Corporate Tax Rate 30% 0% 50% Last year's corporate tax rate: 30% Government Expenditure (billions) $30 Expenditure should be between 0-1000 billion Forecast World Economic Growth % Last year's government expenditure (billions): $30 2.4 Econland Consumer Confidence Index 100 Year 2 Economic Forecast Decisions Interest Rate 3.0% 0% 7% Last year's interest rate: 3% Elections in some of the largest emerging markets have brought to power a set of new leaders who have announced their strong commitment to democracy and the rule of law, market based reforms, and social inclusiveness. This has resulted in a new wave of optimism for the world economy, with trade, investment and employment expected to increase. The world economic growth forecast has been revised upwards to 3.2%. Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Corporate Tax Rate 30% 0% Forecast World Economic Growth % 50% Last year's corporate tax rate: 30% 3.2 Government Expenditure (billions) Econland Consumer Confidence Index $30 103 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 Year 3 Economic Forecast Decisions Interest Rate 3.0% 7% The newly elected governments have so far failed to live up to expectations. The early signs of promise have been replaced by some signs of frustration for both businesses and consumers. After last year's rapid world economic growth, the global economy is still doing well, but is beginning to slow down. This year world economic growth is expected to be 1.6%. 0% Last year's interest rate: 3% Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Forecast World Economic Growth % Corporate Tax Rate 1.6 30% 0% 50% Econland Consumer Confidence Index Last year's corporate tax rate: 30% 101 Government Expenditure (billions) $30 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 Year 4 Economic Forecast Decisions Interest Rate 3.0% 0% 7% Last year's interest rate: 3% The world economy is slowing down further as the governments in the world's largest countries fail to boost growth and reduce unemployment in a significant way. Emerging markets are also slowing down as commodity prices have dropped, and several overheated real estate markets have started to suffer. As result of these different headwinds, world economic growth is expected to slow down to 0.8% next year. Income Tax Rate & 24% 50% 0% Last year's income tax rate: 24% Corporate Tax Rate 6 Forecast World Economic Growth % 0.8 30% 0% 50% Last year's corporate tax rate: 30% Econland Consumer Confidence Index Government Expenditure (billions) 98 $30 Expenditure should be between 0-1000 billion J Last year's government expenditure (billions): $30 Decisions Interest Rate 0 3.0% 0% 7% Last year's interest rate: 3% Year 5 Economic Forecast Confidence in the world's major economies has collapsed and stock markets across the world have fallen sharply. The world is in economic crisis. The IMF has issued a warning that without concerted action by the leaders of the largest economies, the world economy will shrink next year, causing serious consequences for the unemployed and working families. The latest official forecast for world economic growth stands at -0.4%. This will certainly have an impact on Econland. Which measures need to be taken to weather the storm? Income Tax Rate O 24% 0% 50% Last year's income tax rate: 24% Corporate Tax Rate O 30% Forecast World Economic Growth % 50% 0% Last year's corporate tax rate: 30% -0.4 Government Expenditure (billions) Econland Consumer Confidence Index $30 97 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 ja Year 6 Economic Forecast Decisions Interest Rate 3.0% 7% 0% Last year's interest rate: 3% Several corrupt government and business leaders have been given lengthy jail sentences. Meanwhile, the IMF has agreed on a stabilization package with countries that were in crisis that has helped to stop the panic and to stabilize the situation. Other countries have provided fiscal and monetary stimulus to their economies. Confidence in the world economy is beginning to return, but risks to economic stability remain. World economic growth is predicted to pick up slightly to reach 0.2% next year. Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Corporate Tax Rate Forecast World Economic Growth % 30% 0% 50% 0.2 Last year's corporate tax rate: 30% Government Expenditure (billions) Econland Consumer Confidence Index 96 $30 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 V Year 7 Economic Forecast Decisions Interest Rate 3.0% 7% It looks like the world economy has turned a corner, with many parts of the world growing again at a healthy pace. Stability has returned to several major advanced economies in Asia and Europe; China and India are growing quickly again, and this is benefiting other economies in Asia. The latest forecast for world economic growth is now 1.6%. 0% Last year's interest rate: 3% Income Tax Rate 24% 0% 50% Forecast World Economic Growth % Last year's income tax rate: 24% 1.6 Corporate Tax Rate 30% 0% 50% Econland Consumer Confidence Index Last year's corporate tax rate: 30% 101 Government Expenditure (billions) $30 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 Welcome to Econland Your role: You are responsible for managing the economy of Econland, a medium-sized country, for a period of seven years. You must make monetary and fiscal policy decisions that make Econland's population happyboth by maximizing real GDP growth and by keeping the unemployment rate and budget deficit as low as possible. Inflation also needs to be low, but remain positive-deflation is destabilizing to an economy. Along the way, you will be tasked with analyzing economic growth forecasts and will receive yearly updates from your policy advisors. Your yearly decisions: Interest rate Income tax rate Corporate tax rate Government spending How you will be measured: GDP growth Unemployment rate Inflation rate Budget surplus (or deficit) Your goal: You will receive approval points from your citizens each year (0-100 points). Your goal is to finish year seven with the highest possible approval rating. Good luck! Year 1 Economic Forecast Decisions Interest Rate 3.0% 0% 7% Last year's interest rate: 3% Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Last year Econland's GDP was US$100 billion, making the economy roughly the size of Puerto Rico or Hungary. Econland is affected by global economic conditions, but it is too small to impact the global economy in return. Exports and imports both account for 25% of GDP. Last year, the world economy did well and Econland experienced solid economic growth (2.4%). Unemployment is low (5%), and inflation (at 2%) and the budget deficit (2.8% of GDP) are under control. Total government debt is 60% of GDP. The outlook for next year is moderately positive, with the International Monetary Fund (IMF) predicting world economic growth of 2.4%. The Consumer Confidence Index is at its long-term average of 100. Corporate Tax Rate 30% 0% 50% Last year's corporate tax rate: 30% Government Expenditure (billions) $30 Expenditure should be between 0-1000 billion Forecast World Economic Growth % Last year's government expenditure (billions): $30 2.4 Econland Consumer Confidence Index 100 Year 2 Economic Forecast Decisions Interest Rate 3.0% 0% 7% Last year's interest rate: 3% Elections in some of the largest emerging markets have brought to power a set of new leaders who have announced their strong commitment to democracy and the rule of law, market based reforms, and social inclusiveness. This has resulted in a new wave of optimism for the world economy, with trade, investment and employment expected to increase. The world economic growth forecast has been revised upwards to 3.2%. Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Corporate Tax Rate 30% 0% Forecast World Economic Growth % 50% Last year's corporate tax rate: 30% 3.2 Government Expenditure (billions) Econland Consumer Confidence Index $30 103 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 Year 3 Economic Forecast Decisions Interest Rate 3.0% 7% The newly elected governments have so far failed to live up to expectations. The early signs of promise have been replaced by some signs of frustration for both businesses and consumers. After last year's rapid world economic growth, the global economy is still doing well, but is beginning to slow down. This year world economic growth is expected to be 1.6%. 0% Last year's interest rate: 3% Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Forecast World Economic Growth % Corporate Tax Rate 1.6 30% 0% 50% Econland Consumer Confidence Index Last year's corporate tax rate: 30% 101 Government Expenditure (billions) $30 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 Year 4 Economic Forecast Decisions Interest Rate 3.0% 0% 7% Last year's interest rate: 3% The world economy is slowing down further as the governments in the world's largest countries fail to boost growth and reduce unemployment in a significant way. Emerging markets are also slowing down as commodity prices have dropped, and several overheated real estate markets have started to suffer. As result of these different headwinds, world economic growth is expected to slow down to 0.8% next year. Income Tax Rate & 24% 50% 0% Last year's income tax rate: 24% Corporate Tax Rate 6 Forecast World Economic Growth % 0.8 30% 0% 50% Last year's corporate tax rate: 30% Econland Consumer Confidence Index Government Expenditure (billions) 98 $30 Expenditure should be between 0-1000 billion J Last year's government expenditure (billions): $30 Decisions Interest Rate 0 3.0% 0% 7% Last year's interest rate: 3% Year 5 Economic Forecast Confidence in the world's major economies has collapsed and stock markets across the world have fallen sharply. The world is in economic crisis. The IMF has issued a warning that without concerted action by the leaders of the largest economies, the world economy will shrink next year, causing serious consequences for the unemployed and working families. The latest official forecast for world economic growth stands at -0.4%. This will certainly have an impact on Econland. Which measures need to be taken to weather the storm? Income Tax Rate O 24% 0% 50% Last year's income tax rate: 24% Corporate Tax Rate O 30% Forecast World Economic Growth % 50% 0% Last year's corporate tax rate: 30% -0.4 Government Expenditure (billions) Econland Consumer Confidence Index $30 97 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 ja Year 6 Economic Forecast Decisions Interest Rate 3.0% 7% 0% Last year's interest rate: 3% Several corrupt government and business leaders have been given lengthy jail sentences. Meanwhile, the IMF has agreed on a stabilization package with countries that were in crisis that has helped to stop the panic and to stabilize the situation. Other countries have provided fiscal and monetary stimulus to their economies. Confidence in the world economy is beginning to return, but risks to economic stability remain. World economic growth is predicted to pick up slightly to reach 0.2% next year. Income Tax Rate 24% 0% 50% Last year's income tax rate: 24% Corporate Tax Rate Forecast World Economic Growth % 30% 0% 50% 0.2 Last year's corporate tax rate: 30% Government Expenditure (billions) Econland Consumer Confidence Index 96 $30 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30 V Year 7 Economic Forecast Decisions Interest Rate 3.0% 7% It looks like the world economy has turned a corner, with many parts of the world growing again at a healthy pace. Stability has returned to several major advanced economies in Asia and Europe; China and India are growing quickly again, and this is benefiting other economies in Asia. The latest forecast for world economic growth is now 1.6%. 0% Last year's interest rate: 3% Income Tax Rate 24% 0% 50% Forecast World Economic Growth % Last year's income tax rate: 24% 1.6 Corporate Tax Rate 30% 0% 50% Econland Consumer Confidence Index Last year's corporate tax rate: 30% 101 Government Expenditure (billions) $30 Expenditure should be between 0-1000 billion Last year's government expenditure (billions): $30