Imagine that your Learning Team is a group of economic advisors working for the U.S. president. You have been tasked with evaluating the current state of the U.S. economy and making recommendations on how to improve it.
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Part 1 Analysis and Recommendations:
Describe the current state of the following economic factors and analyze how each affects aggregate supply and demand:
- Unemployment
- Expectations
- Consumer income
- Interest rates
Develop a set of recommendations for the president regarding government spending and taxes based on the economic factors’ current state.
Part 2 Evaluation of Recommendations:
Before you submit your recommendations to the president, decide as a team to evaluate the recommendations from different perspectives. Assign half of your team to evaluate the recommendations from a Keynesian perspective and the other half from the Classical perspective. Based on these evaluations, what adjustments will you make to your recommendations, if any?
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