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04.05 Uncle Sam's Toolbox

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Purcell Farquharson

on 14 January 2014

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Transcript of 04.05 Uncle Sam's Toolbox

04.05 Uncle Sam's Toolbox
Purcell Farquharson
Mrs. Wano

Scenario #1
4. This is a budget surplus because although the government is spending money, it is bringing in more money through taxation than it is spending.
Scenario #2
7. This creates a budget deficit because the government is spending more money than what is being earned.
Scenario #3
11. I would make a decrease in taxes and increase on government spending.
Fiscal policy has to deal with government earning and spending money. The tools that the government uses are taxing and spending. The goals of fiscal policy is to make businesses produce more by creating demands in the economy.
The difference between fiscal and monetary policy is that fiscal policy is controlled by the president and Congress and they deal with taxes and government spending. On the other hand, monetary policy is focused more on buying/selling government securities to control money supply.
I do think that the government should create a law mandating a balanced federal budget because it will definatley prevent us from going into so much debt.
The government is currently spending three billion, one hundred million on programs and brings in three billion, five hundred million through taxation.
5. As a member of congress, I think it would make an increase on taxes. I also think I would make a decrease amount on what the government spends.
6. I think that the benifit would be the government would be making more money through taxation but it would also cause problems to economic growth because people would be having to pay more, princes would range all over the place and people might become unemployed.
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.
8. As a member of congress, I would have to say the best way
to fix this issue would be to also decrease the spending and hope
-fully increase the taxes to gain more money.
9. Again, I think that the benifit would be the government would be making more money through taxation but it would also cause problems to economic growth because people would be having to pay more, princes would range all over the place and people might become unemployed.
The nation is currently experiencing a period of rising prices. Inflation is making consumer goods increasingly difficult to afford as wages have remained constant.
10. I don't think that the unemployment rate would change,
If anything it would get worse.
12. The impacts my decision would have on the
economy is that the economy would grow better, and prices
would become more reasonable, and unemployment would get
better or remain the same because people would be able to
keep their jobs and maintain an affordable lifestyle.
13. My proposed policy would be expansionary because it would be causing a growth in the economy.
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