Question
Google the following articles listed below: Michigan to cut budget by $304 million, use federal stimulus to cover rest of $1.3 billion deficit. Michigan estimates
Google the following articles listed below:
Michigan to cut budget by $304 million, use federal stimulus to cover rest of $1.3 billion deficit.
Michigan estimates that drop in tax revenues could be up to $3 billion for fiscal year (Detroit press).
Coronavirus guts Michigan college budgets. And it's going to get worse.
a. What has happened to Michigan's production possibility frontier (PPF), especially over the past8-9 years?If you weren't living in Michigan at that time, please compare your state then to Michigan now.
b. How is the state responding to this shift?
c. If you were to respond to this shift, how would you have done so, recognizing that there are always costs to each of your decisions.
d. Are these decisions always politically-based?We have a Democratic governor, but would a Republican governor have made different decisions? (Remember, constitutionally we have to balance the budget every year in Michigan).
e. In the past year, Michigan has had a government budget surplus, although this is not a sure thing for 2018. How would you handle a government budget surplus?
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