Three Economic Scenarios Scenario 1 Scenario 2 Scenario

Three Economic Scenarios • Scenario 1: • Scenario 2: • Scenario 3: Ø GDP growth has slowed to less than 1%. Ø GDP growth is rising rapidly, and is at 5% Ø GDP growth is falling, and is at 2%. Ø Unemployment is at 8. 5% and increasing. Ø Unemployment is at 4. 6 % and continues to fall. Ø Unemployment is at 7. 9 % and continues to rise. Ø CPI growth is 2% and falling. Ø CPI has increased by 9%. Ø CPI has increased by 11%. Ø The level of investment spending has hit a 12 month high. Ø The price of oil has hit an all time high. Ø The level of investment spending is falling. Ø Ø The level of investment spending has hit a 3 -year low. Ø Consumer confidence is falling. Spending on durable goods is increasing. • .

Research Guide You must address all of the following topics (in Cite al sou l of yo rce u s!!! r this order!) in your presentation: Describe fiscal and monetary policy. When and how was it instituted, and who is responsible for carrying it out? What are some criticisms of your policy? 2. Analyze the tools of your policy, explain how the policy works, and describe the effects on GDP, unemployment and prices. 3. Evaluate the specific economic data for each scenario. Explain which is inflation, recession, and stagflation. 4. Recommend a specific policy action based on your evaluation. Describe how it will solve the economic problem you identified. 1. Try: www. easybib. com/ to help you cite your sources