Imagine that your Learning Team is a group of economic advisors working for the U.S. president. You have been tasked with evaluating the current state of the U.S. economy and making recommendations on how to improve it.
Part 1 Analysis and Recommendations:
Describe the current state of the following economic factors and analyze how each affects aggregate supply and demand:
- · Consumer income
- Interest rates
Develop a set of recommendations for the president regarding government spending and taxes based on the economic factors’ current state.
Part 2 Evaluation of Recommendations:
Before you submit your recommendations to the president, decide as a team to evaluate the recommendations from different perspectives. Assign half of your team to evaluate the recommendations from a Keynesian perspective and the other half from the Classical perspective. Based on these evaluations, what adjustments will you make to your recommendations, if any?
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