year 0 year 1

Global economic growth forecast 2.4 2.4

consumer confidence index 100.0 100.0

interest rate 3.0 2.5

income tax rate 24.0 20.0

corporate tax rate 30.0 31.0

government expenditure us (in billions) 30.0 30.0

Real GDP growth % 2.5 5.0

Unemployment rate % 5.0 4.0

Inflation rate % 2.0 2.5

budget surplus (deficit)as % of GDP -3.0 -4.8

consumption 55.0 66.8

Government expenditure 30.0 30.0

investment 15.0 15.3

exports 25.0 25.7

imports 25.0 30.2

nominal GDP 100.0 107.6

real GDP 100.0 105.0

what impact did the changes have on the income and corporate tax rates? How were consumption and investment affected by the tax policy decisions?