SU_ECO2072_W5_A1_Dunn_K

SU_ECO2072_W5_A1_Dunn_K - Economic Policies and Practices...

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Economic Policies and Practices By Kimbra Dunn
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Budget Plan This implemented plan from the government means more government spending. Over the years the government’s spending has increased, which leads to an increase in aggregate demand. With this increase the aggregate demand the government will expect an increase in aggregate supply, making the aggregate supply curve to move to the right. Ultimately the output will increase leading to higher investment in capacity and an increase in employment. Long term – additional debt means higher taxes.
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Tariffs and Quotas This is a protection of local industries because the effect of new tariffs and quotas on all imports will lead to higher prices. In short term – the outcomes in the economy will be protection of jobs in the United States based firms. This also increases the sales of United States goods.
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Confidence in Their Leadership The government creates confidence when its policies are clear, consistent and concrete. Without this consumers won’t spend if they
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