Suppose you have been given a chance to run a economic policies of a country. How would
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Question:
Suppose you have been given a chance to run a economic policies of a country. How would you choose monetary, taxation, and government spending policies.
- What could be the impact of changes to the income and corporate tax rates you would make. How could consumption and investment be affected by your tax-policy decisions?
- Compare and contrast the impact of tax policy decisions you would make with those of current in the United States. What do these examples demonstrate about the validity of macroeconomic models?
- Explain your decision-making regarding government expenditure. What was the intent of your fiscal policy decisions?
- Evaluate your fiscal policy decisions, including how would they impact key macroeconomics factors such as real GDP growth and unemployment.
- Refer to the AD/AS model to support your analysis in this section of your report.
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