4. Consider the macroeconomic balance sheets of the following economies. As policy analyst what would be your monetary and fiscal policy advice in both case Explain your answer. Country A Country B GDP Growth Rate: 7% GDP Growth Rate: 0.5% Inflation: 9% Inflation: 2.1% VIX Index (Equity Market Volatility Index): 99 VIX Index (Equity Market Volatility Index): 63 70

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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4. Consider the macroeconomic balance sheets of the following economies. As a
policy analyst what would be your monetary and fiscal policy advice in both cases?
Explain your answer.
Country A
Country B
GDP Growth Rate: 7%
GDP Growth Rate: 0.5%
Inflation: 9%
Inflation: 2.1%
VIX Index (Equity Market Volatility
Index): 99
VIX Index (Equity Market Volatility
Index): 63
Unemployment: 5%
Unemployment: 7%
Exchange Rate Volatility: High
Exchange Rate Volatility: Low
Budget Deficit and Government
Borrowing as a share of GDP: High
Budget Deficit and Government
Borrowing as a share of GDP: High
Oil Exporter: Yes
Oil Exporter: No
Transcribed Image Text:4. Consider the macroeconomic balance sheets of the following economies. As a policy analyst what would be your monetary and fiscal policy advice in both cases? Explain your answer. Country A Country B GDP Growth Rate: 7% GDP Growth Rate: 0.5% Inflation: 9% Inflation: 2.1% VIX Index (Equity Market Volatility Index): 99 VIX Index (Equity Market Volatility Index): 63 Unemployment: 5% Unemployment: 7% Exchange Rate Volatility: High Exchange Rate Volatility: Low Budget Deficit and Government Borrowing as a share of GDP: High Budget Deficit and Government Borrowing as a share of GDP: High Oil Exporter: Yes Oil Exporter: No
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