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

1) govt is in debt ,so it wants money from people so the interest rate in the economy will be more as govt will give high rate to take more money. So aggregate demand increases as people will have more money in hand now

2) As the tarrif is more on import then demand of local goods will be more because foreign goods is imported less , so aggregate demand of local goods will increase in the economy. Aggregate supply of local goods will increase in the economy

3) Aggregate demand will be less becuase people are uncertain about their jobs in the future so they will save more

4) Demand level will increases in the economy because people will now more money in the hand because they now have to pay less tarrif

5) Demand level will decrease in the economy because of less buying of goods or financial products

6) Interest rate is low then more money will be availabe with the people so demand will be more and supply will also be more

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