a. Current approach of the country to taxing and spending policies as they relate to the Business Cycle
b. Country’s current budget deficit and total debt and the debt’s percentage of GDP.
Page 2 and 3:
Assessment of Country’s overall Economic Conditions
a. Assessment of the Aggregate Demand condition for the country. An analysis of which AD factors are most relevant to the country’s future growth potential.
b. Assessment of the Aggregate Supply condition of the country. An analysis of which AS factors are most relevant to the country’s growth potential.
c. AD/AS diagrams indicating the relevant shifts in the future based on the analysis of fiscal, monetary and trade policy.
d. Assessment of the impact of AD and AS on:
i. Levels of Output.
ii. Employment.
iii. Income
iv. Prices
Sample Solution