Question
macro economics question..... please complete to the fullest, Mr. Green works full time as a Taxi driver in Kingston, for the last two years he
macro economics question.....
please complete to the fullest, Mr. Green works full time as a Taxi driver in Kingston, for the last two years he has seen his income fall dramatically because of the imposition if the Disaster Risk Management Act which has seen schools closing and Work from home policies implemented. Throughout the pandemic, the Jamaican government designed and implemented a number of stimulus packages to cushion the effects on different sectors of the economy which have been most impacted by the effects of the last two years of lockdown. Finance Minister Dr. Nigel Clarke in closing the 2022-2023 Budget debate indicated that special assistance will be given to taxi operators this financial year. Here is an excerpt from his presentation: Madam Speaker, we aim to be targeted in our approach. That is, as much as practically possible, direct the relief towards persons who have been and are most affected and who have the least ability to cushion for themselves. We recognize that everyone feels it Madam Speaker. But Government assistance should go to assist those who are most vulnerable, who are in the lowest consumption deciles and to those who need it most. The population of Jamaicans who depend on public transportation is substantial and is at least three times as large as the population fortunate enough to own their own motor vehicle. Madam Speaker we need to protect those who depend on public transportation and we will do so by supporting public transport operators. The GOJ will provide $25,000 in vouchers to operators of public passenger vehicles, including route taxi operators and contract carriage operators, in recognition of the higher cost of fuel at this time. Madam Speaker this programme will cost just under $600 million. This voucher programme will begin towards the latter half of April and will be administered by the Transport Authority under the stewardship of Minister of Transport and Mining, the Hon. Audley Shaw who I am sure will speak more fulsomely to it. In addition, the GOJ will make available $200 million in revolving loan financing for public passenger vehicle operators, which will be available through Microcredit and Approved Financial Institutions, by way of the Development Bank of Jamaica. This financing will be available for short term loans for tyres, batteries and spare parts required for public transportation operations. a) The measures announced by the Minister to assist the operators of public passenger vehicles will no doubt increase government spending. Discuss TWO (2) impacts which an increase in government spending could have on the economy. (8 marks) 2a.Identify TWO (2) methods that the government of Jamaica can use to finance its increased spending (2mks) b. As a citizen of Jamaica, write an open letter to the Finance Minister Dr. Clarke suggesting to him which method you believe he should employ to finance the increased spending this financial year. Discuss TWO (2) arguments to support your suggestion. (15mks) C. Do a survey of no less than 10 taxi drivers in a particular locale to gauge their reaction to the Ministers announced stimulus package. (20 mks) TASKS Do a survey instrument that you will use to get taxi drivers reaction Present your findings using tables, graphs etc. Analyze your findings in two paragraphs Do a one paragraph conclusion which highlights your major findings
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