Table 1: Real GDP and Its Components This table shows the various components of Gross Domestic Product

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Consumption 55.0 115.1 119.5 137.3 147.5 152.1 153.2 159.2

Government Expenditure 30.0 100.0 125.0 100.0 100.0 100.0 110.0 90.0

Investment 15.0 15.2 16.1 31.2 32.2 31.3 31.3 32.1

Exports 25.0 25.6 27.7 29.3 31.1 32.8 34.5 36.2

Imports 25.0 52. 51.5 56.8 58.2 57.4 55.6 56.0

Nominal GDP 100.0 203.6 236.8 241.1 252.6 258.7 273.4 261.5

Real GDP 100.0 199.6 217.7 210.3 217.1 225.6 232.1 216.6

Table 2.1

[Insert your responses to the following: Explain the intent of the taxation policy decisions you made of 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.]