The following rules illustrate traditional economic policy theory in terms of regulating a government’s economy. a) If the annual growth rate is less than 1%: • If inflation is less than 3%, recommended economic policy is: Increase welfare spending, reduce personal taxes, and decrease discount rate. • Otherwise, recommended economic policy is: Reduce business taxes. b) If the annual growth rate is greater than 4%: • If inflation is less than 1%, recommended economic policy is: Increase personal and business taxes, and decrease discount rate. • If inflation is greater than 3%, recommended economic policy is: Increase discount rate. Write a program that applies these economic policy practices. More specifically, read in growthRate and inflation values and output the recommended economic policy for the given economic situation. If there is no recommended economic policy for the given economic situation, then output “No change in economic policy.” Sample Runs: Enter growth rate: 4.5 Enter inflation rate: .5 Increase personal & business taxes and decrease discount rate.
The following rules illustrate traditional economic policy theory in terms of
regulating a government’s economy.
a) If the annual growth rate is less than 1%:
• If inflation is less than 3%, recommended economic policy is:
Increase welfare spending, reduce personal taxes, and decrease
discount rate.
• Otherwise, recommended economic policy is:
Reduce business taxes.
b) If the annual growth rate is greater than 4%:
• If inflation is less than 1%, recommended economic policy is:
Increase personal and business taxes, and decrease discount rate.
• If inflation is greater than 3%, recommended economic policy is:
Increase discount rate.
Write a program that applies these economic policy practices. More specifically,
read in growthRate and inflation values and output the recommended economic
policy for the given economic situation. If there is no recommended economic
policy for the given economic situation, then output “No change in economic
policy.”
Sample Runs:
Enter growth rate: 4.5
Enter inflation rate: .5
Increase personal & business taxes and decrease discount rate.
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Enter growth rate: .9
Enter inflation rate: 4
Reduce business taxes.
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Enter growth rate: 5
Enter inflation rate: 8
Increase discount rate.
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Enter growth rate: 4
Enter inflation rate: 2
No change in economic policy.
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