The annual association meeting of your selected 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. For your presentation, write a report (in essay form) in which you consider and 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.

Do not write your report based just on textbook theoryaddress current policy and how it will impact your industry, based on theory.

Address the following in your report as appropriate:

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