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Fiscal Policy Simulation
The purpose of this simulation is to help familiarize ourselves with some tools the Government uses to help regulate the Fiscal Policy in order to keep the economy moving in the right direction and to maximize the long term potential outputs. This simulation also shows the impact the fiscal policy has on real output and Gross Domestic Product. This paper will answer questions about the effects of changes made to the fiscal policy during the simulation and provide a summary of the results from my decisions.
In this simulation we are given the ability to make changes the Fiscal Policy for the country of Erehwon. We are given the opportunity to make decisions about spending and taxes that ultimately impact the country's state of equilibrium. As we look at the relationship of government spending to taxes and where the money is allocated we are able to identify the impacts of more than just the budget or deficit. With the small changes that are made to the......
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Approximate Word Count: 591
Approximate Pages: 3 (250 words per double-spaced page)
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