This website uses cookies to ensure you have the best experience. Learn more

Fiscal Policy Simulation Essay

1052 words - 4 pages

"Fiscal policy is the use of the government budget to affect an economy" (Weil 2002, para. 1). Fiscal policy is measured by observing the difference between what the government's intake and the government's output. When the government's revenue is higher than the expenditure, the policy is said to be tight. On the other hand when the government's revenue is lower than the expenditure the fiscal policy is said to be loose (Weil, 2002).The fiscal policy simulation shows an environment in which fiscal policy decisions need to be made and the outcomes are studied. After completing the simulation a better understanding of how the government applies tools in the fiscal policy in order to improve the economy was attained. The simulation explains the effects of the changes in the fiscal policy. Four key points were emphasized in the simulation which will be further discussed.Effects of Changes in Fiscal PolicyThe first scenario presented on The University of Phoenix simulation (2007) is set in year 2XX6. In 2XX6 the feedback obtained was to find ways to fight recession. The budget deficit can not increase past 5% of the gross domestic product (GDP).The team's, which is composed of Maria Alvarez (Vice President of Erehwon) and Frank Smith (Director of the Budget Office), suggestion is to deal with the unemployment issue first. The team suggests that more jobs can be created by increasing the spending on infrastructure and spending more money on education. The team's suggestions will be taken into consideration when making the final decision.The final decision has been reached. The final decision was to increase the government spending on infrastructure by $100 million, increase the spending on education by $100 million and decrease the income tax rates by .05%. The decisions on the fiscal policy changes in the year 2XX6, concluded on a decline in the unemployment rate. The previous unemployment rate was 6.32% ending with an unemployment rate of 4.62%. The inflation rate remained the same (5%). The popularity was improved. The popularity rate was 3.20% and increased to 3.70%. The changes made in the 2XX6 scenario were favorable. The changes brought positive results to the economy of Erehwon.The second scenario presented on The University of Phoenix simulation (2007) is set in year 2XX8. This scenario begins by informing that an inflation problem has occurred. In order to reduce inflation incomes need to be reduced. The team suggested that high dollar expenditure should be lowered along with income tax rate. The team's suggestions were taken into consideration while making the final decision.The final decision has been reached. The decision was to decrease the government spending on infrastructure by $400 million, decrease the spending on education by $400 million and decrease the income tax rates by 1%. The changes in the fiscal policy decreased the inflation rate. Inflation decreased from 11.75% to 5.75%. Popularity increased from 1.35% to 4.13%. Although...

Find Another Essay On Fiscal Policy Simulation

Fiscal Policy Alternatives Simulation Essay

1091 words - 4 pages Fiscal Policy Alternatives PAGE \* MERGEFORMAT 3 Running head: FISCAL POLICY ALTERNATIVESFiscal Policy AlternativesEden JackUniversity of PhoenixFiscal Policy AlternativesThe country of Erehwon has a population of 30 million and a total land area of 440,500 square kilometers (University of Phoenix). As newly elected President, I will be making some fiscal changes in the hopes of improving our economy. Our country is currently facing the issues

ECO/360 Fiscal Policy Simulation Essay

866 words - 3 pages "Even in free market economies, governments have an important role to play in keeping the economy on the growth path, and dealing with inflation and recession." The fiscal policy simulation was offered to provide the students with an environment in which to make fiscal policy decisions and study the outcomes. The purpose of this paper is to explain the effects of changes in fiscal policy, identify four key points presented in the simulation

Evaluating Fiscal Policy Alternatives Simulation Paper

1197 words - 5 pages Running head: EVALUATING FISCAL POLICY 1 EVALUATING FISCAL POLICY PAGE \* MERGEFORMAT 8 Evaluating Fiscal Policy Alternatives Simulation PaperNameECO/372: MacroeconomicsMarch 21, 2010instructorEvaluating Fiscal Policy Alternatives Simulation PaperIn the University of Phoenix simulation (2003), Evaluating Fiscal Policy Alternatives, a situation is presented concerning the effects of fiscal policy, "the impact of a change in government spending

Fiscal Policy Simulation

558 words - 2 pages The Fiscal Policy Stimulation is designed to show how the impact of a change in government spending and taxes affects the real Gross Domestic Product and income of the economy. Students are asked to play the roll of President of a small country called Erehwon. Erehwon is rich in mineral deposits and has a suitable climate for agriculture. Exports include fresh fruits, vegetables, processed foods, iron ore, bauxite and manganese. The

Fiscal Policy

995 words - 4 pages and discuss the effects of the changes in fiscal policy in the simulation and will highlight four key points from the reading assignments that were emphasized in the simulation. In addition there will be a discussion on the application of what was learned in the simulation to a familiar organization. Lastly there will be a summary of simulation assessments.Erehwon Fiscal PolicyIn the first simulation scenario it is year 2xx6 and Erehwon is facing

Fiscal Policy Alternatives

818 words - 3 pages AbstractIn Economics 360 at the University of Phoenix I took part in a simulation to demonstrate fiscal policy. During this simulation I discovered several topics relating to what I was learning in the text. I will be discussing the effects of the changes in fiscal policy, several key points, how it relates to the workplace and my results from the growing further section.Fiscal Policy AlternativesThe governments of countries evaluate and work

Fiscal Policy

520 words - 2 pages The purpose over this paper is to summarize the Fiscal Policy analysis that I have accumulated for this simulation. This simulation exams the importance of fiscal policy of a government in setting the level of pubic expenditure and how should the expenditure be funded.The effects of the changes in the fiscal policy of this simulation were based on injecting money in a particular area such as government spending on infrastructure; government

Fiscal Policy

709 words - 3 pages IntroductionDuring week three of Economics 360 at the University of Phoenix I participated in a simulation to demonstrate fiscal policy. During this simulation I discovered several topics relating to what I was learning in the text. Some that I will discuss further are limitations of fiscal policy, either positive or negative, how I relate what I have learned in the simulation and how can I translate that into my work environment.First, fiscal

International Trade Simulation

1004 words - 4 pages dispute about free trade against trade limitations is constant, even though there is concurrence with free trade being superior to enforcing trade limitations. The International Trade Simulation suggests several quite significant chief aspects in regard to current economic situations around the world. For instance, supply and demand, international trade, monetary policy and fiscal policy are several aspects which can affect the way an economy is

Applying International Trade Concepts Paper

1362 words - 5 pages increases price levels, decreases competitiveness, and reduces the exchange rate. Contractionary fiscal policy decreases price levels, increases competitiveness, and increases exchange rates.Key Points of Reading AssignmentFour key points from the reading assignments that were emphasized in the simulation were comparative advantage, opportunity cost, balance of trade, and trade restrictions.Comparative advantage is "the ability to be better suited to

Resume Document

1144 words - 5 pages SUMMARY: Over 33 years of professional civilian and military management experience with strong performance in operations, budget, and financial management. Over 15 years of Financial Management experience with strong background in budgetary and accounting systems. Over five years experience as Site and Technical Manager for a highly complex computer simulation training center. PROFESSIONAL EXPERIENCE: USIS, (U.S. Government Peace-Keeping

Similar Essays

Fiscal Policy Simulation Essay

995 words - 4 pages and discuss the effects of the changes in fiscal policy in the simulation and will highlight four key points from the reading assignments that were emphasized in the simulation. In addition there will be a discussion on the application of what was learned in the simulation to a familiar organization. Lastly there will be a summary of simulation assessments.Erehwon Fiscal PolicyIn the first simulation scenario it is year 2xx6 and Erehwon is facing

Fiscal Policy Simulation Essay

633 words - 3 pages The Fiscal Policy simulation provides a background for implementation of key concepts for economics and the dilemmas of a government. Several questions are proposed such as, "Why is a high budget deficit cause for concern? Is it better to have a budget surplus? What can the government do to fight inflation? How does an economy come out of a recession?" These questions are the everyday affairs for the government of the country of Erehwon. The

Fiscal Policy Simulation Essay 875 Words

875 words - 4 pages Fiscal Policy SimulationWhat are the effects of the changes in fiscal policy in the simulation?The formula of fiscal policy affects the popularity of a presidency, the unemployment, the gross domestic product (GDP), the government tax revenue basis, education expenditures; however, a major example of the effects of the changes in policy cannot be reaped immediately. A recession may take time to resolve the intent of controlling inflation

Fiscal Policy Simulation Essay 888 Words

888 words - 4 pages The Fiscal Policy Simulation assignment explains the effects of changes in fiscal policy, identify four key points presented in the simulation, apply the lessons to the workplace and describes the growing further results. The simulation covers fiscal policy the impact of a change in government spending or taxation on the real Gross Domestic Product (GDP) and aggregate income of the economy.In my first decision of the simulation, the Director of