The annual association meeting of the Food Manufacturing Industry will take place soon. You have been asked to discus the current status of the federal budget and fiscal policies in place in the United States. Also, explain how the current status of the federal budget and fiscal policy will impact the Food Manufacturing Industry over the next 2 years, using economic theory to support the conclusions you draw.

Address the current policy and how it will impact the Food Manufacturing Industry, based on theory.

Address the following in your discussion:

• expansionary and contractionary fiscal policy,
• fiscal policies used to close a recessionary gap and an expansionary gap, and
• the rationale for budget deficits.