Question
You are an entry Level economic analyst for the bureau of economic analysis (BEA) and you have to summarize the economic impact of three possible
You are an entry Level economic analyst for the bureau of economic analysis (BEA) and you have to summarize the economic impact of three possible fiscal policy initiative the federal gvt is considering as a means of eliminating the estimated $670bn recessionary gap. As part of your summary report you have to
(1) discuss what fiscal policy options are available to the gvt to achieve their anticipated economic outcome.
(2) Compute what are the estimated changes in the fiscal policy options that would be required to eliminate the recessionary gap assuming the marginal propensity to save is 0.08 and
(3) graphically illustrate the impact of these policy proposals.
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