ECO 202 Project Template
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Southern New Hampshire University *
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202
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Economics
Date
Jun 11, 2024
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docx
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5
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ECO 202 Project Template
Economic Summary Report
Table of Contents
1.
Introduction
2.
Fiscal Policies: Taxation
3.
Fiscal Policies: Government Expenditure
4.
Monetary Policies
5.
Global Context
6.
Conclusions
7.
References
Introduction
For the benefit of the incoming administration, I submit this report to document, analyze, and interpret the macroeconomic policy decisions I made as the chief economic policy advisor of Econland. The purpose of this document is to further our national prosperity by deepening our understanding of the relationship between macroeconomic policies and their consequences for our citizens. The report includes a thorough accounting of the major fiscal and monetary policy decisions made over each of the seven years of my term, as well as an explanation of the underlying rationales for those decisions and the resulting impacts of those policies.
Table 1.1
The table above summarizes the macroeconomic climate of Econland over my term. I chose to go with the high economic growth and volatility. Overall, my performance started out being scored high at a score of 75. As I played around with the factors, my score decreased dramatically. The first year I tried not to make any drastic changes, but as the years went on I wanted to see what would get me the highest scoring. Fiscal Policy: Taxation
Table 2.1
During my seven-year term, my taxation policy decisions were driven by a combination of macroeconomic principles and models aimed at achieving specific economic goals such as promoting growth, ensuring equity, and maintaining fiscal stability. The macroeconomic principles that influenced my decision-making would be the progressive taxation system and corporate tax rate.
I had all intentions of keeping the corporate tax the same but decided to lower it to assist corporations. Income tax typically stayed around 27% and I tried not to move it much. I did lower the inflation rate to 1% to see that it helped with the real GDP a lot. This allowed for a much lower unemployment rate as well.
In the simulations, I typically kept the corporate tax rate at 30% as normal. I did adjust it a few times from year 2 to year 5 to see the outcome it may have on Ecoland. I had a higher overall score when I kept the corporation taxes higher at 30%. When I lowered it to 20%, my score dropped more than 30 points. The United States currently has a corporation tax of 21%. The idea was to mimic a real-
life situation to see if I would get the same outcome. Fiscal Policy: Government Expenditure
Figure 3.1
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