I am looking for different thoughts on this...When I\'m finished with this paper

Question

I am looking for different thoughts on this...When I'm finished with this paper, it should be 3 to 6 page minimum.

The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulting economic events or activity will usually change. Listed below are several policies or events that affect the performance of the economy:

Required:

For each of the items above, describe what would be the likely outcomes in the economy. Use the appropriate tools of analysis, such as aggregate demand and aggregate supply where appropriate, to justify and explain your answer.

Explanation / Answer

I will give you a brief idea about every part

1) If national debt increases and their is no future plan to how to pay that debt then if that govt is not able to pay the debt then that country would face the situation of bankruptcy and loan interest rate for that country will be higher. Due to which debt will increase at a higher rate and import of goods will be less. As people of that country will have less money

2) If tarrif rates are higher and quota were there than import will be less. Then domestic production will be high.So supply of goods by local suppliers will be high

3) Migration will take place and skilled labour can move. Thus the local production can be affected as local skilled labour has benn moved.So production is more.

4) If taxes are decreased in economy then people will have more money inhand. So the expenditure will be more then demand will be more in the economy.

5) If investment decreases in the economy then income level will decrease in the economy. So income level of people will decrease and demand will be less in the economy.

6) If interest rates are low then people can get money from banks at low rate. So people will have more money in hand so the expenditure will be more and demand in the economy will also get increased

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