PLEASE MAKE SURE YOU USE THE TEMPLATEScenarioYou have just completed your seven-year term as the chief economic policy advisor responsible for managing the economy of the nation of Econland. You are expected to create a report for the incoming administration. In this outgoing report, you will summarize your macroeconomic policy decisions and the economic outcomes for Econland. The purpose of this report is to share the lessons you’ve learned over your term and promote sound macroeconomic decision making moving forward.DirectionsFirst, assemble the materials that you will need to complete this assignment:Access the Macroeconomics Simulation: Econland from Harvard Business Review and select either the Rollercoaster or Stagnation scenarios. Once you have completed your final year of your seven-year term, you can access the final reports under the Dashboard and Reports tabs at the top of the webpage. You will use these charts, graphs, and other visualizations to illustrate your report in the indicated areas of the template (for example, Table 1.1). Reach out to your instructor if you have any questions about accessing these resources.Review and use the Project Template located in the What to Submit section.The cover page, Table of Contents, and Introduction sections of your report are provided and should remain standard in all submissions except where indicated in the template. You should read the brief Introduction section, as it provides insight into the purpose and structure of the deliverable, and add the high-level descriptions where prompted.There are placeholders in the template for your data visualizations (e.g., charts, graphs, tables, etc.). These placeholders are meant to give you a rough approximation of the placement of the visualizations that are required. You should replace the placeholders with the appropriate, indicated images in each case. To create an isolated image from the simulation data, it is recommended that you use a snipping tool or other image-editing software to copy and paste your data visualizations into the template. See the relevant tutorials in the Supporting Materials section for more information.You are expected to reference any source material used in your report with appropriate citations. To support you, a References page has been added to the project template with the citation for the course’s reading already provided. Any other references you add should be cited according to APA format.Once you have assembled the required materials listed above, you can now begin drafting your economic summary report by completing the following steps:The first section of your report is the Introduction, in which you will personalize the provided content with the particular information related to your term (i.e., your simulation results) as the chief economic policy advisor for the nation of Econland. Follow the instructions in the template for contextualizing this section, including adding Table 3 from your simulation report to the indicated area of the template (i.e., Table 1.1). Then, add a two- to three-sentence summary specifying which underlying scenario you chose and your overall performance and approval rating.Taxation Policies: In the Fiscal Policies: Taxation section of your report, discuss the taxation policies of Econland for the public and your successor. Within this section, you should add an image of Table 1 from your simulation results to the indicated area of the template (i.e., Table 2.1). Then, answer the following questions in the paragraphs below the table:Explain your intent for the taxation policy decisions you made over your seven-year term. What were the macroeconomic principles or models that influenced your decision making?Identify the impact of your changes to the income and corporate tax rates. How were consumption and investment affected by your tax-policy decisions? Explain these dynamics using specific macroeconomic principles from the course reading.Compare and contrast the impact of your tax policy decisions with those of current or historical examples in the United States. What do these examples demonstrate about the validity of macroeconomic models? Be sure to cite your research appropriately. (See the Supporting Materials section.)Government Spending: In the Fiscal Policies: Government Expenditure section of your report, discuss government spending policies of Econland for the public and your successor. Within this section, you should add an image of the “Real GDP Growth” and “Unemployment Rate” graphs from your simulation results and use an aggregate demand and aggregate supply (AD/AS) model to the indicated area of the template (i.e., Figures 3.1 and 3.2). Images of the AD/AS model can be found in the course reading or any reputable online source. Then, answer the following questions in the paragraphs below the figures:Explain your decision makingregarding government expenditure and how it changed based on the macroeconomic conditions. What was the intent of your fiscal policy decisions in response to the given economic climate?Evaluate your fiscal policy decisions, including how they impacted key macroeconomics factors such as real GDP growth and unemployment. To what extent did your policies yield positive or negative outcomes?Refer to the AD/AS model to support your analysis in this section of your report.Monetary Policies: In the Monetary Policies section of your report, discuss the monetary policies of Econland for the public and your successor. Within this section, you should add an image of the “Inflation Rate” graph from your simulation results to the indicated area of the template (i.e., Figure 4.1). Then, answer the following questions in the paragraphs below the figure:Explain how you changed the interest rate levels and how these changes impacted other macroeconomic factors such as inflation, consumption, investments, GDP, and foreign trade. Provide specific examples to help illustrate.Compare and contrast the impact of your monetary policies with those of current or historical examples in the United States. What do these examples demonstrate about the validity of macroeconomic models? Be sure to cite your research appropriately. (See the Supporting Materials section.)Global Context: In the Global Context section of your report, you will expand your discussion from the particular case of Econland to consider the wider global context. Analyze the impacts of openness to trade in general. Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy? Support your claims with specific details from the course reading.Conclusions: In the Conclusions section of your report, draw your overall conclusions about the relevance and significance of macroeconomics for the public and your successor.Assess the effectiveness of your economic policy decisions. Did your economic policy decisions produce the anticipated results? Did your macroeconomic principles and models behave in ways that you expected? Provide specific examples to illustrate.Evaluate how consumer confidencemight have impacted the outcomes of your policy decisions for the economy of Econland. Why is consumer confidence a relevant factor for making informed macroeconomic decisions?Finally, ensure that all of your sources are properly cited using in-line citations and references according to APA format.What to SubmitTo complete this project, you must submit the following:Economic Summary ReportYour economic summary report should outline the key principles and takeaways of your Econland simulation for your successor. It should also illustrate how the macroeconomic ideas are relevant to the nation’s future economic success.Template: Project TemplateUse this template to submit your economic summary report, and submit it as a Word document. Sources should be cited according to APA style.Supporting MaterialsThe following resources support your work on the project:Video: How to Use the Snipping Tool (Beginner’s Guide) (for PC)Use this tutorial for help with snipping, copying, and pasting your data visualizations into your project template.A captioned version of this video is available: How to Use the Snipping Tool (Beginner’s Guide) (CC).Resource: Is There a Snipping Tool for Mac?Use this tutorial for help with snipping, copying, and pasting your data visualizations into your project template.Resource: APA Style BasicsUse this resource to support your in-line citations and full references in the References section of your project template.Resource: Board of Governors of the Federal Reserve SystemUse this resource to support your research for the U.S. Comparisons portions of the Fiscal Policy: Taxation and Monetary Policies sections of your report.Resource: Congressional Budget Office: Budget and Economic DataUse this resource to support your research for the U.S. Comparisons portions of the Fiscal Policy: Taxation and Monetary Policies sections of your report.Resource: White House: Economy & JobsUse this resource to support your research for the Fiscal Policy: Taxation and Monetary Policies sections of your report.Project RubricCriteriaExemplary (100%)Proficient (85%)Needs Improvement (55%)Not Evident (0%)ValueTaxation Policies: DecisionsExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerExplains the intent of the taxation policy decisions and provides specific macroeconomic principles or models that influenced the decision makingShows progress toward proficiency, but with errors or omissions; areas for improvement may include providing specific macroeconomic principles or modelsDoes not attempt criterion8Taxation Policies: ImpactsExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerIdentifies the impact of different income and corporate tax rates, including the effects on consumption and investment, and provides specific macroeconomic principles to support the claimsShows progress toward proficiency, but with errors or omissions; areas for improvement may include providing specific macroeconomic principles to support the claimsDoes not attempt criterion9Taxation Policies: U.S. ComparisonExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerCompares and contrasts the impact of the Econland tax policies with current or historical examples in the United States, and includes a discussion about the validity of the underlying macroeconomic modelsShows progress toward proficiency, but with errors or omissions; areas for improvement may include drawing appropriate conclusions about the validity of the underlying macroeconomic modelsDoes not attempt criterion9Government Spending: DecisionsExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerExplains the decision-making process regarding Econland government expenditure and the intent of the fiscal policy decisions based on the macroeconomic conditionsShows progress toward proficiency, but with errors or omissions; areas for improvement may include discussing the intent of the fiscal policy decisionsDoes not attempt criterion8Government Spending: ImpactsExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerEvaluates the fiscal policy decisions, and explains if the policies positively or negatively impacted key macroeconomics factors such as real GDP growth and unemploymentShows progress toward proficiency, but with errors or omissions; areas for improvement may include discussing how the policies impacted key macroeconomic factors such as real GDP growth and unemploymentDoes not attempt criterion9Government Spending: AD/AS ModelExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerRefers to the AD/AS model to support the analysis of one’s own fiscal policy decisionsShows progress toward proficiency, but with errors or omissionsDoes not attempt criterion8Monetary Policies: ImpactsExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerExplains how changes in interest rate levels impacted other macroeconomic factors such as inflation, consumption, investments, GDP, and foreign trade, providing specific examples to help illustrateShows progress toward proficiency, but with errors or omissions; areas for improvement may include citing specific examplesDoes not attempt criterion9Monetary Policies: U.S. ComparisonExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerCompares and contrasts the impact of Econland’s monetary policies with those of current or historical examples in the United States, and includes a discussion about the validity of the underlying macroeconomic modelsShows progress toward proficiency, but with errors or omissions; areas for improvement may include drawing appropriate conclusions about the validity of the underlying macroeconomic modelsDoes not attempt criterion9Global ContextExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerAnalyzes the different impact of monetary and fiscal policies in a closed economy versus an open economy and supports the claims with details from the course readingShows progress toward proficiency, but with errors or omissions; areas for improvement may include supporting claims with details from the course readingDoes not attempt criterion9Conclusions: Principles and ModelExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerAssesses the effectiveness of the economic policy decisions using specific examples to illustrate the claimsShows progress toward proficiency, but with errors or omissions; areas for improvement may include providing specific examples to illustrate the claimsDoes not attempt criterion9Conclusions: Consumer Confidence IndexExceeds proficiency in an exceptionally clear, insightful, or sophisticated mannerEvaluates how consumer confidence impacted the outcomes of Econland policy decisions, including why consumer confidence is a relevant factor for making informed macroeconomic decisionsShows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining why consumer confidence is a relevant factor for making informed macroeconomic decisionsDoes not attempt criterion9Articulation of ResponseSubmission has no errors related to citations, grammar, sentence structure, spelling, or organization and integrates all required tables and figures correctlySubmission has no major errors related to citations, grammar, sentence structure, spelling, or organization preventing understanding of ideasSubmission has major errors related to citations, grammar, sentence structure, spelling, or organization preventing understanding of ideasSubmission has critical errors related to citations, grammar, sentence structure, spelling, or organization preventing understanding of ideas4Total:

Following the “great recession” of 2008-09, the central bank had used all of its traditional tools to try to stimulate the economy. Interest rates were at historic lows, but the economy still needed more help.The Fed then embarked on a new strategy, one it had never used before called “quantitative easing.” Basically The Fed credited its electronic bank account with new money (the modern version of printing money), then used the money to buy financial assets. The idea was that this “new money” would be pushed into the economy, thereby increasing the amount of money banks had on hand, which would hopefully result in more lending and therefore economic activity.Many economists were concerned that this increase in the number of dollars circulating would result in inflation, in accordance with the implications of the quantity equation/ quantity theory of money (from the end of chapter 14).Essentially, the Fed made a decision on behalf of our society to pursue economic growth at the risk of causing inflation. With this in mind, please respond to the following:Is this a good trade-off? Why or why not? Please use economic reasoning (marginal analysis) in your explanation, and support your position with online research. In your response, please include a link to at least one article or website supporting your position that passes the CRAAP Test (Links to an external site.).Should The Fed have the authority to make these trade-offs on behalf of our society? Recall that the Fed presidents are not elected by the citizens, they political appointees. Considering citizens' general knowledge of economics, and how crucial the economy is to our well-being, would you prefer a system where voters ran the economy?

Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to classmates or your faculty member. Due Day 3 Respond to the following in a minimum of 175 words: How do you think income elasticity affects a normal good versus an inferior good? Provide a real-world example. Student 1 Top of Form Income elasticity affects a normal good versus an inferior good, when you have a positive income elasticity it’s because the demand has gone up or down for a normal good. I can present a real life scenario, when my rental income from my Airbnb’s increased after the initial COVID-19 scare, the calls increased and so did the demand for rentals. However, at the onset of COVID-19 no one wanted to travel thereby decreasing the demand for short term rentals. However, when income goes down, the demand for inferior goods goes up, mostly because its cheaper, like store brand items, Someone mentioned shopping at Walmart because they are cheaper. I like Walmart because they'll carry a product that Big Lots may not. But I prefer Big Lots because as a perk member I get sent 15% off coupons a lot and I get an additional 15% off because I have military ID. Walmart has a lot of great brands that big lots might not. With the recent change in Big Lots management they are starting to carry more top brands. Lastly when consumer income increases, the need for inferior products decreases while the demand for normal goods go up. We can assume that Inferior goods cause a negative income elasticity; the demand decreases because consumers have more money to spend they purchase nicer goods. Student 2 Top of Form Income elasticity definitely affects a normal good versus an inferior one. Take grocery shopping for example. Most people in my area prefer the well-known stores like Marino's, Jewel Trader Joes. Most people when they shop prefer named brands verses off brands. When you have a positive income elasticity its because the demand has with gone up or down for a normal good. When my income goes up, so does my demand for name brand products, but it also hold true that when my income goes down, my demand also goes down. On the other hand, when income goes down, the demand for inferior goods goes up, mostly because its cheaper, like an off brand. In these cases people tend to shop more at Walmart or Aldi since prices are cheaper and their off brands are actually pretty good. Once someone's income goes back up, their need for the inferior good goes down and the demand for normal goods go up. Inferior goods cause a negative income elasticity. For me personally, my demand for inferior goods went up because I like to save money and I personally like shopping at Walmart and Aldi, they are great stores in my area.