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Autumn Russell FLVS Economics 4.05 Uncle Sam’s Toolbox 1. Fiscal policy must deal with government revenue and expenditure. The tools used by the government are taxation and expenditure. The goal of fiscal policy is to enable companies to produce more by creating demand in the economy. 2. The difference between fiscal policy and monetary policy is that fiscal policy is controlled by the President and Congress, who handle taxes and government spending. On the other hand, monetary policy focuses more on buying and selling government securities to control the money supply. 3. I agree that the government should enact a law that mandates a balanced federal budget because it can prevent us from falling into debt. Scenario 1  The government currently spends 3 billion, 100 million on projects, and brings in 3 billion, 500 million through taxation. This is a budget surplus, because although the government is spending money, it brings more money through taxes than it spends. As a member of Congress, I believe it would result in a tax rise. I'd also cut the amount of money the government spends overall. The government would benefit by making extra money through taxation but would also bring on problems for economic process as people would need to pay more, prices would vary and unemployment would increase. Scenario 2  The government is currently spending three billion, seven hundred million on programs and brings in two billion, nine hundred million through taxation. additionally, the state has experienced a period of rising unemployment. This is able to create a deficit because the government is spending extra money than what's being earned.

As a member of congress, I’d must say the simplest thanks to fix this issue would be to also decrease the spending and if needed increase the taxes to realize extra money. Again, the benefit would be the govt would be making more cash through taxation, but the downside is that it also would cause problems for economic process. I think this line of thinking may interfere with some efforts to decrease unemployment. Scenario 3  The nation is currently experiencing a period of economic process. Inflation is making commodity increasingly difficult to afford as wages have remained constant. I’d make a decrease in taxes and increase the govt. spending. The impacts my decision would wear the economy is that the economy would grow better, and costs would become more reasonable. Unemployment would either decrease or remain the identical as this plan would allow people to stay their jobs and maintain an inexpensive lifestyle. My proposed policy would be expansionary because it causes a growth within the economy....