Question: which policy decisions were more successful and why? Why does the simulation provide you with a global economic outlook for each year? How does an

  • which policy decisions were more successful and why?
  • Why does the simulation provide you with a global economic outlook for each year? How does an open economy versus a closed economy impact government policy decisions?
  • At the end of each year, the simulation highlights changes in consumer confidence. Why is the economic indicator "consumer sentiment" relevant for making successful policy decisions? Use news sources to support your answer.

Table 3: Economic Environment, Decisions, and ResultsThis table summarises the Decisions and Results of your game.

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

Global Economic Growth Forecast 2.4 2.4 3.2 1.6 0.8 -0.4 0.2 1.6

Consumer Confidence Index 100.0 100.0 103.3 100.5 99.2 95.7 96.4 101.4

Interest Rate % 3.0 3.0 2.5 2.5 3.0 2.5 2.5 3.0

Income Tax Rate % 24.0 24.0 20.0 25.0 25.0 25.0 20.0 20.0

Corporate Tax Rate % 30.0 30.0 25.0 30.0 30.0 25.0 25.0 25.0

Government Expenditure US$ (in billions) 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0

Real GDP Growth % 2.5 1.0 6.4 -0.7 0.7 2.9 1.6 4.0

Unemployment Rate % 5.0 5.6 4.0 4.7 7.0 5.6 5.2 4.7

Inflation Rate % 2.0 2.0 1.5 4.0 2.5 -0.6 1.7 1.8

Budget Surplus (Deficit) as % of GDP-3.0 -2.1 -4.5 1.9 2.7 2.7 -1.5 -0.2

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