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Uncle sam's toolbox

26/04/2021 Client: muhammad11 Deadline: 2 Day

Your Name:________________________ 04.05 Uncle Sam's Toolbox—Sneak Peak Part One Respond to the following questions regarding fiscal policy in complete sentences. 1. Define fiscal policy. Include the goals and tools of fiscal policy and the entity that controls it. 2. Compare and contrast fiscal and monetary policy. How are they alike and how do they differ? 3. Should the government create a law mandating a balanced federal budget? Support your position with evidence from the lesson. 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. 4. Does this create a budget surplus or deficit? Explain. 5. 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. 6. What are the benefits and opportunity costs of the changes you propose? Consider the impact on economic growth, price stability, and unemployment. Scenario 2: The government is currently spending three billion, seven hundred million on programs and brings in two billion, nine hundred million through taxation. In addition, the nation has experienced a period of rising unemployment. 7. Does this create a budget surplus or deficit? Explain. 8. 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. 9. What are the benefits and opportunity costs of the changes you propose? Consider the impact on economic growth, price stability, and unemployment. 10. How might your efforts to balance the budget conflict with efforts to decrease unemployment, if at all? Scenario 3: The nation is currently experiencing a period of rising prices. Inflation is making consumer goods increasingly difficult to afford as wages have remained constant. 11. As a member of Congress, what changes would you suggest to fiscal policy to balance the budget and address unemployment? Suggest at least two specific changes to revenue and expenditures. 12. What are the benefits and opportunity costs of the changes you propose? Consider the impact on economic growth, price stability, and unemployment. 13. Are the proposed policies contractionary or expansionary? Explain. ...

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