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You are Chairman of the Council of Economic Advisors, reporting President of the United States. You essentially are the Chief Economist for the United States.
You are Chairman of the Council of Economic Advisors, reporting President of the United States. You essentially are the Chief Economist for the United States. Your staff economists are projecting a budget deficit of $650 billion which would take the total outstanding federal debt to $17.9 trillion. Some staff members point to the high unemployment rate and falling labor force participation rates as reasons for a more expansionary fiscal policy. Others are more concerned about the negative impact the deficit and continued borrowing will have on the economy. You are to recommend three specific fiscal policy measures to the President, which may be tax or spending initiatives. First state your policy goal - what you hope your policies would achieve - and then the specific policy measures. Make the policy measure specific. Tax changes must identify approximate rate changes and income brackets. Budget changes should identify amounts and programs or agencies. Justify each one for economic reasons. Identify any negative effects of each recommendation. You may include non-economic benefits, but you must clearly identify that they are a secondary considerations because you are advising the President in your role as an economist
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