Question

Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 4.3% 0.2% Real GDP growth rate Unemployment rate inflation Tax revenues (% of GDP) National Debt to GDP ratio 10% 1.2% 19% 127% 23% -0.8% 27% 180% Government spending over that past decade has remained stable around 20% of GDP. Which of the following policies do you think is best for reversing the current situation? Consider the implications on economic activities of all choices and form a detailed response as to why you chose one of them A. Increase taxation but keep government spending stable. B. Increase taxation and at the same time increase government spending through the increase in public sector jobs. C. Introduce tax cuts for employers that hire workers. D. Decrease taxation on low and middle income households and increase government spending. E. Decrease taxation on high income households and keep government spending stable.

Answer 1

Data Page so to Ahs-B as nop is increasing from 2009 to 2016, also National Dext to chop Ratio is increasing but at the same time unemployment Rate to is also increasing @ overcome this situation enoverment have to spend more on public sector also to reduce National Debt- 70 R UDP ratio choverment have to increase taxation so increasing taxation and at the same time increase government spending through in the in Public sector jobs. jobs.com increase