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Model: The economy is stagnant {inactive}. The country is at peace. The unemployment rate is currently 3%. Consumer and business spending are declining. There is a huge government decit and Americans are rebelling against tax increases. Next year is an election year for the President. Why is there an Where are we on the What scal or Why will your solution economic problem? business cycle? Explain. monetary tools will solve the problem? ou use? Th ere is an economic probl Problem #1: Ination grips the United States. Consumer prices have gone up 15% in the past year. Unemployment is virtually nonexistent, with only 3% of the labor force looking forjobs. Why is there an Where are we on the wrist scal or Why will your solution economic problem? business cycle? Explain. monetary tools will solve the problem? ou use