The annual association meeting of the US Auto Insurance Industry will take place soon. You have been asked to present a report regarding the current status of the federal budget and fiscal policies in place in the United States. Explain how the current status of the federal budget and fiscal policy will impact your chosen industry over the next 2 years, using economic theory to support the conclusions you draw.

Discuss the following:

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

Please provide information on where simplified information regarding fiscal policies for the current year can be located?