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While referring to the "EYE on YOUR LIFE" section on, discuss the macroeconomic policy issues facing the U.S. economy today based on the economic concepts you have learned in this course.
• Does our economy have a recessionary gap or an inflationary gap?
• Are you more concerned about the provision of public services, the size of the budget deficit, or the size of the tax wedge?
• If you are more concerned about the provisions of public services, would your preferred fiscal package include increased spending? If so, on what programs? How would you pay for the expenditure?
• If you are more concerned about the size of the budget deficit, how would you propose lowering it? What public services would you eliminate to achieve a smaller deficit?
• If you are more concerned about the tax wedge, would your preferred fiscal package include tax cuts? If it would, what public services would you cut to achieve lower taxes?
Price/Feeder Quantity Demanded Quantity Supplied $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 90 1300 1100 60 1400 1000 30 1500 90
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