In your responses, comment on at least two posts from your peers, and compare and contrast your simulation experience and analysis. Refer to the textbook to support your decisions and your claims related to open economies and consumer confidence.

This stimulation was a lot harder than the previous one. Learning more about economics helped me understand how to make better decisions, however, the difference in the state of the economy made it challenging to make decisions. The policy decision that was most successful was inflation. When inflation was positive, it meant that government spending needed to increase.

The stimulation provides the global economic outlook to help with the choices for the next year. When I noticed that the year predicted growth, it helped me make decisions about interest rates and government spending. An open economy, which engages in international trade, has more complex policy decisions compared to a closed economy, which does not participate in international trade. In an open economy, changes in interest rates and exchange rates can have significant effects on the economy, including inflation, investment, and consumption. In contrast, a closed economy is not subject to the same external variables and can focus solely on domestic policies to manage the economy.

Customer sentiment is relevant for making successful policy decisions because it indicates how Americans feel about the economy. These are the people that have to live with decisions that policy decision-makers come up with. In the real world, you are not going to please everyone. However, I do believe that one could accomplish at least pleasing most of the people living in the country.

Peers-Below

\fReal GDP Growth Unemployment Rate Approval Rating Feedback from Policy Advisor High Low 10.0 - 5.0 7 100 - 8.0 4.0 - 80 6.0 - 3.0 - 60 4.0 - 2.0 - 40 The economy is now doing well on % of labor force 2.0 1.0 - 20 - all fronts and your population is 0.0 0.0 satisfied with the results of your 0 2 3 4 5 6 7 0 1 2 3 4 5 6 policies. Well done. The economy is growing at a good Inflation Rate Budget Surplus (Deficit) Average Approval Rating pace. See if you can identify the policy decisions that have resulted Low Low High in this level of economic growth. You have kept government 10.0 - 9.0 7 expenditure constant in nominal 8.0 - 6.0 . terms. Remember that, if inflation 6.0 3.0 - % of GDP 4.0 - 0.0 . 84 is positive, this amounts to a reduction in government 2.0 - -3.0 - expenditure in real terms (i.e. after points 0.0 -6.0 adjusting for inflation). 0 1 2 3 4 5 6 7 0 1 3 4 5 6 7 The government is running a budget surplus. This means there is an opportunity to increase government spending or reduce taxes in order to boost economic growth