Fiscal Policy Simulation

Running head: FISCAL POLICY SIMULATION financial insurance policy Simulation Paper ECO/360 Fiscal Policy Fiscal policy is a regimen levying and spending policy that influences macroeconomic conditions. This policy affects tax rates, interest rates, and government spending to control the economy. During the course of this paper, I will discuss the Fiscal policy simulation and the do of the changes that the Fiscal policy produced. Also the four key points discussed in the readings will be established as well. Effects of the Changes The Fiscal Simulation begins in a small country of Erehwon were the mineral deposits is endowed with a climate suitable for agriculture. Mining and bear upon foods are the major industries in Erehwon to produce jobs. Erehwon lacks sufficient roads and railroads to impute different cities with each new(prenominal) ports for shipping goods to other cities in need of supplies produced from the mining and processed foods industry. Erehwon suffers a undischarged deal from inflation. Income has fallen tremendously due to businesses closing piling which creates high unemployment rates.

As president I will execute correct decisions to lower the inflation rate and the unemployment rate to study this countrys economy up. The fiscal policy changes that my aggroup and I established (Maria Alvarez, Vice President of Erehwon and Frank smith , Director of the Budget Office) established increased government expenditure, cut down taxes or increased both. If we chose to increase government expenditure on infrastructure projects rather than investing in education, we could began restructuring the roads and railroads to connect to other cities for exports and imports. By doing this restructuring, we were able to create jobs and bring income into households. cardinal Key Points Four key points that is illustrated in the simulation and in the assigned readings are: Unemployment rates... If you want to get a all-embracing essay, order it on our website: Orderessay

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