ECO202 Lecture Notes - Lecture 3: Great News
29 Nov 2022
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From year 0 to year 1, real gdp grew by 16. 2% and the unemployment rate fell by 3%. Although the gdp was excessively high and the unemployment was low, the overall approval rating was consistent at 75%. The budget deficit rose -by 4. 2% between year 0 and year 1. My decisions for year 1 caused an increased government expenditure based on the unrealistic bases of the amounts i chose. Due to this type of decision, this report, if real would be considered unreliable. All my decisions weren"t all bad though, the economic growth was going in the right direction. Based on the policy advisor report, the deficit was large which could be fixed by. Raising taxes or keeping government spending under control. being too lenient with either of those could lead to recessions. Then, there are the falls in investment that would ultimately hurt the economy"s productivity, including lower economic growth and a rise in the unemployment rate.
