[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.]

[Compare and contrast the impact of your tax policy decisions with those of current or historical examples in the United States. What do these examples demonstrate about the validity of macroeconomic models? Be sure to cite your research appropriately.]

Table 3: Economic Environment, Decisions, and Results 0 Global Economic Growth Forecast Consumer Confidence Index Interest Rate % Income Tax Rate % Corporate Tax Rate % Government Expenditure US$ (in billions) Real GDP Growth % Unemployment Rate % Inflation Rate % Budget Surplus (Deficit) as % of GDP Year 0 2.4 100.0 3.0 24.0 30.0 30.0 2.5 5.0 2.0 Year 1 2.4 100.0 3.5 24.0 30.0 30.0 0.8 5.7 1.5 Year 2 3.2 103.3 3.0 24.0 30.0 40.0 13.4 2.0 0.9 Year 3 1.6 100.4 3.0 24.0 31.0 40.0 Year 4 0.8 102.7 3.0 24.0 28.0 40.0 1.5 8.1 4.7 Year 5 93.9 3.0 24.0 30.0 40.0 4.6 Year 6 0.2 96.7 3.5 24.0 30.0 40.0 Year 7 1.6 102.3 3.0 23.0 30.0 40.0 4.4 6.4 0.0 Table 1: Real GDP and Its Components Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Consumption 55.0 58.6 62.6 65.6 74.8 80.4 78.1 83.3 Government Expenditure 30.0 30.0 40.0 40.0 40.0 40.0 40.0 40.0 Investment 15.0 15.1 16.2 16.4 17.7 16.0 15.1 16.0 Exports 25.0 25.5 26.5 27.1 27.6 28.0 28.5 29.6 Imports 25.0 26.8 28.3 29.5 33.4 35.2 33.6 35.1 Nominal GDP 100.0 102.3 117.1 119.7 126.7 129.2 128.1 133.8 Real GDP 100.0 100.8 114.3 109.6 111.2 116.3 112.9 117.8