Part Two Consider the following three scenarios. Respond to the reflection questions related to eac

Part Two
Consider the following three scenarios. Respond to the reflection questions related to each scenario with your suggestions for government action in complete sentences.
Scenario 1: The government is currently spending three billion, one hundred million on programs and brings in three billion, five hundred million through taxation.

1. Does this create a budget surplus or deficit? Explain.



2. As a member of Congress, what changes would you suggest to fiscal policy to balance the budget? Explain at least two ways you would use the tools of fiscal policy to balance the budget by recommending an "increase" or "decrease" to each tool in your explanation.

3. What are the benefits and opportunity costs of the changes you propose? Consider the impact on economic growth, price stability, and unemployment.
myulima
Asked Nov 07, 2013

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