Question.4218 - ECO 202 Simulation Checkpoint Assignment Economic Summary Report [Throughout this template, replace the content in the bracketed text with your responses, and delete any bracketed instructions, including these.] [Your report's Table of Contents and Introduction sections are provided and should remain standard in all submissions.] [The placeholders for your data visualizations (for example, charts, graphs, and tables) should be replaced with the appropriate indicated images in each case. To create an isolated image from the simulation data, copy and paste your data visualizations into this template using a snipping tool. See How to Use Snipping Tool (Beginners Guide) for more information if you use a PC. A captioned version of this video is available: ECO-201: How to Use Snipping Tool Beginners Guide (CC). If you use a Mac, see Is There a Snipping Tool for Mac? Four Best Snipping Tools.] Table of Contents Introduction Fiscal Policies: Government Expenditure Monetary Policies References Introduction For the benefit of the incoming administration, I submit this report to document, analyze, and interpret the macroeconomic policy decisions I made as the chief economic policy advisor of Econland. This document aims to further our national prosperity by deepening our understanding of the relationship between macroeconomic policies and their consequences for our citizens. The report includes a thorough account of the major fiscal and monetary policy decisions made over each of the seven years of my term, as well as an explanation of the underlying rationales for those decisions and the resulting impacts of those policies. [Replace this area with Table 3 from your simulation report.] Table 1 The table above summarizes the macroeconomic climate of Econland over my term. [Add a two- to three-sentence summary characterizing your overall performance and approval ratings as the chief economic policy advisor of Econland based on your simulation results.] Fiscal Policy: Government Expenditure [Insert your responses to the following: Explain your decision making regarding government expenditure and how it changed based on the macroeconomic conditions. What was the intent of your fiscal policy decisions in response to the given economic climate?] [Evaluate your fiscal policy decisions, including how they impacted key macroeconomic factors such as real GDP growth and unemployment. To what extent did your policies yield positive or negative outcomes?] Monetary Policies [Replace this area with an image of the “Inflation Rate” graph from your simulation results.] Figure 1 [Insert your responses to the following: Explain how you changed the interest rate levels and how this change impacted inflation. Provide specific examples to illustrate.] References Mankiw, N. G. (2024). Principles of economics (10th ed.). Cengage Learning. [Add other citations using the APA Style: Basics guide].
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This document aims to further our national prosperity by deepening our understanding of the relationship between macroeconomic policies and their consequences for our citizens. The report includes a thorough account of the major fiscal and monetary policy decisions made over each of the seven years of my term, as well as an explanation of the underlying rationales for those decisions and the resulting impacts of those policies. Table 1 The table above summarizes the macroeconomic climate of Econland over my term. During my term as the chief economic policy advisor of Econland, the overall performance of the economic growth and approval ratings is slow to moderate. Inflation rate was generally kept low, and the budget deficit steadily decreased, turning into a surplus by the end of Year 7. Real GDP growth and unemployment rate maintained a moderate fluctuation throughout those 7 years. As a result of these outcomes, Econland maintained a favorable environment for economic growth, with approval ratings remained moderate throughout the term. Fiscal Policy: Government Expenditure Throughout my term, I kept government spending consistent at $30 billion each year. This is because I want to ensure economic stability and avoid any changes that could hamper uncertainty for businesses and households. When the economy slowed down, especially in Year 3 and Year 4, I chose not to increase government spending drastically. Instead, I relied on other tools like interest rates to avoid inflation and help the economy recover at its own pace. I wanted to avoid pushing the budget deficit higher and instead allowed the economy to recover through gradual changes. By Year 7, the budget was in surplus, showing that this steady approach worked. keeping spending constant helped balance the economy, prevent inflation, and keep the budget under control, contributing to steady economic growth. In order to maintain stability in the economy, I kept government spending steady at $ 30 billion.. By keeping it constant, the economy didn’t experience large deficits or high inflation. It helped GDP Grow steadily over time. During times of economic slowdown (like in Year 4, with only 0.9% growth), I didn’t increase government spending enough to give the economy a bigger push. As a result, growth was slower. The unemployment rate generally remained below 6% throughout my term, with only a slight increase in Year 5 (up to 6.1%). This suggests that stable government spending helped prevent large increases in unemployment, even during slower economic periods. Monetary Policies Figure 1 I did not change the interest levels. I kept the interest levels steady at 3% for the entire seven years. A steady interest rate encourages businesses and consumers to make long-term investment decisions. In the early years, inflation remained at a manageable 2.0%, which was in line with the target for a healthy economy. In Year 5, inflation fell to 0.4% during a period of slower growth. By Year 7, inflation rose slightly to 0.8%, a low level that indicated a stable economy. Although inflation was not high, it was positive, which is important because deflation (falling prices) can harm economic stability. A small positive inflation rate helped maintain steady growth without causing significant price increases. References Mankiw, N. G. (2024). Principles of economics (10th ed.). Cengage Learning. [Add other citations using the APA Style: Basics guide].More Articles From Macroeconomics
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