Macroeconomics - Fiscal Policy

Code : Macroeconomics-Fiscal Policy Page 1 As much as possible we should have , Economic Growth , High Employment and Low Inflation

I will take Expansionary , because , you will have reduced ( or maintain it means no increase ) taxation . For that , public Spending is increased which is good for business activities

Our government must reduced spending , that is by making a review of all the Expenses and considering only the necessary ones . If to reduce the Taxes is not possible , then just maintain them , or no increase at all

Gross Domestic Product : Fourth Quarter

2006 (advance

Real Gross Domestic Product - The Output of Goods and Services provided by Labor and Property located in the United States - Increase at an annual rate of 3 .5 percent in the fourth quarter of 2006 ,according to advance estimates released by the Bureau of Economic Analysis . In the third quarter , real GDP increased 2 .0 percent . Source : HYPERLINK "http /wwwbea .gov /bea /newsrel /gdpnewsrelease .htm http /wwwbea .gov /bea /newsrel /gdpnewsrelease .htm

Unemployment rate : 4 .6 percent in January 2007

Change in unemployment level 168 ,000 in January 2007

Annual averages

Unemployment level : 7 ,001 ,000 for 2006 Source :http /www .bls .gov /cps /home .htm

While the General Price level average is 197 .2 . To depend my position based on the given data , National Income and Employment is consistent...