The Task

For this task you need to be able to suggest policies which the government of the economy should implement to help the hypothetical economy reach their economic and social objectives.

Areas you need to consider:

• Assess the performance of this economy with reference to the macroeconomic indicators.
• Outline which phase of the business cycle this economy is experiencing.
• Explain the problems this economy is facing.
• Consider whether fiscal policy changes could help this economy.
• Consider whether monetary policy could help this economy.
• Suggest other policies which may assist this economy.

Use the sections below to help with your answers.