You have been hired by the Federal Government to explain a little about the current economic conditions and make recommendations to keep the economy moving at its current pace and help ensure all citizens benefit from their decisions. In an unprecedented move, the President, the Congress, the Senate and the Federal Reserve have all agreed to follow your recommendations provided they don't upset their constituents. As such, you will have the ability to recommend adjustments to both fiscal and monetary policy as well as any other legislation

For this assignment, develop recommendations.

• Summarize the current state of the economy (AS-AD curves).
• Explain proposed fiscal, monetary, and legislative changes.
• Identify the economic impact of the fiscal, monetary and legislative changes.
• Detailing the costs (or revenue generated by) of any fiscal policy or legislative changes.
• Detail any tradeoffs that were made. (Who benefited? Who ended up paying more?)
• Indicate how or why the country and society is better off based taking your team's guidance.

The Current Economy

The economy has been improving over the past several years. Unemployment is down at 3.5%, wages grew by 2% last quarter and last year's GDP grew by the most in recent history. Over the past month or so, prices appear to be rising.