ECO 202 Project 9.17.23

Government Expenditure US$ (in billions) 30.0 30.0 45.0 32.0 32.0 32.0 30.0 32.0 Real GDP Growth % 2.5 12.8 12.0 -10.8 5.6 5.6 -6.6 7.4 Unemployment Rate % 5.0 2.0 2.0 6.5 9.1 2.5 7.4 6.7 Inflation Rate %2.0 0.0 5.7 5.7 0.4 -3.5 6.9 -1.4 Budget Surplus (Deficit) as % of GDP -3.0 -12.4 -7.3 7.5 8.4 5.0 7.0 8.2 Figure 3.2 Im truly not sure exactly what im supposed to be breaking down. I have been doing the simulation and I do understand that when you increased or decreased either of the tax rates or the interest rate that it effected the entiriety of the sim. Like ive said before, I was focused on the unemployment but also trying to keep everything evenly distributed. Monetary Policies Table 2: Other Macroeconomic Data This table shows economic variables that are impacted by your decisions and help to explain the results Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Capital Stock US$ (in billions) 100.0 105.4 111.4 118.7 127.4 134.0 141.5 150.0 Productivity Growth % 0.0 3.8 4.0 4.6 5.1 3.6 3.9 4.2 Consumer Price Index 100.0 100.0 105.7 111.4 111.8 108.3 115.2 113.8 Exchange Rate Index 100.0 102.0 97.0 94.5 90.3 88.6 86.9 86.5 Trade Balance US$ (in billions) 0.0 -11.4 -8.2 -7.0 -5.4 -6.0 -3.1 -4.6 Income Tax Revenue US$ (in billions) 24.0 13.5 32.0 37.7 39.9 35.4 36.5 40.2 Corporate Tax Revenue US$ (in billions) 3.0 2.5 3.2 3.8 3.3 3.4 3.0 3.6 Government Budget Surplus (Deficit) US$ (in billions) -3.0 -14.0 -9.7 9.4 11.2 6.8 9.5 11.8 Government Debt US$ (in billions) 60.0 74.0 83.7 74.3 63.1 56.3 46.8 35.1 Government Debt as % of GDP 60.0 65.6 62.7 59.2 47.4 41.4 34.6 24.4 Figure 4.1 Real GDP Growth High 01234567-10.8-5.8-0.84.29.214.2% Unemployment Rate Average

Conclusions By doing the sim you were able to realize how much truly goes into everything with businesses. By increasing one or two things it could effect everything else. It all depends on what exactly you want to focus on in order to continue at whatever rate your company decides. By increasing interest rates, or corporate tax rate you could increase the amount of unemployment. However if you focus on unemployment then you hurt the overall of the company. So as a conclusion you can control your business, you just have to make sure what you want to focus on. References Mankiw, N. G. (2021). Principles of economics (9th ed.). Cengage Learning.