Suppose you’ve been appointed as an economic adviser for the United States. The

Question

Suppose you’ve been appointed as an economic adviser for the United States. The president has requested to meet with you, so that he can brush up on his Econ 302 skills. As an economist, you know that the economy is currently going through a contraction on its business cycle. You have predicted a list of questions the president is likely to ask. Here is the list: Should we implement an expansionary fiscal policy or a contractionary fiscal policy? Why would we implement this policy? Under this policy, what’s something we could pass that would make the American people happy? (Propose a specific idea, like a salary hike for all government economists.) What are the reasons why it might make sense to influence the economy through government policy? In your post, provide the answers to these questions.

Explanation / Answer

There should be implementation of expansionary fiscal policy. It must be done to increase the economy of the nation. It requires the reduction of taxes to reeduce expenditure. There must be direct tax payment by consumers. The economic output must be raised. We should implement this policy to improve the living standards tof the economy. This policy, could pass funds which helps in the welfare of people living in the society. There is increase in the salaries of the employees. The policy can influence the economy by increasing the interest of the employees due to hike in the salaries.

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