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Macroeconomics and Policy Pacing

by | Apr 26, 2022 | Economics

I can Analyze economic indicators to determine which fiscal and/or monetary tools to apply to the economy. 

1. The president and congressional leaders are currently looking over economic data to decide the appropriate fiscal policy for the upcoming year. Their goal is a 3% average GPD growth rate and an unemployment rate to be below 4%. Current economic indicators are showing that the economy is experiencing an average GPD growth rate of 2% and an unemployment rate of 5.5%. Based on the current economic indicators, which fiscal policy tools should the government use to reach their economic goals? In 3–4 sentences use evidence from the text to justify and explain your answer. 

2. Federal reserve board members are analyzing current economic data to decide monetary policy. Their target goal for the economy is for the average god growth not to exceed 4% and for inflation not to exceed 2%. Economic indicators are showing that the current economy is experiencing an average GPD growth for 4.5% and an inflation rate of 4%. Based on current economic indicators, which monetary policy tools should the federal reserve use to reach their goal? In 3–4 sentence’s use evidence from the text to justify ur answer.

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