Fluent Essays

ECO 202 Project Template Economic Summary Report [Throughout this template, replace the content in the bracketed text with your own responses, and delete any bracketed instructions, including these.] [The Table of Contents and Introduction sections of your report are provided and should remain standard in all submissions.] [The placeholders for your data visualizations (e.g., charts, graphs, and tables) should be replaced with the appropriate indicated images in each case. To create an isolated image from the simulation data, it is recommended that you use a snipping tool to copy and paste your data visualizations into this template. See How to Use the Snipping Tool (Beginner’s Guide) for more information if you use a PC. A captioned version of this video is available: How to Use the Snipping Tool (Beginner’s Guide) (CC). Or, see Is There a Snipping Tool for Mac?] Table of Contents 1. Introduction 2. Fiscal Policies: Taxation 3. Fiscal Policies: Government Expenditure 4. Monetary Policies 5. Global Context 6. Conclusions 7. References Introduction For the benefit of the incoming administration, I submit this report to document, analyze, and interpret the macroeconomic policy decisions I made as the chief economic policy advisor of Econland. The purpose of this document is to further our national prosperity by deepening our understanding of the relationship between macroeconomic policies and their consequences for our citizens. The report includes a thorough accounting of the major fiscal and monetary policy decisions made over each of the seven years of my term, as well as an explanation of the underlying rationales for those decisions and the resulting impacts of those policies. [Replace this area with Table 3 from your simulation report.] Table 1.1 The table above summarizes the macroeconomic climate of Econland over my term. [Add a two- to three-sentence summary specifying which underlying scenario you chose, as well as your overall performance and approval ratings as the chief economic policy advisor of Econland based on your simulation results.] Fiscal Policy: Taxation [Replace this area with an image of Table 1 from your simulation results.] 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.] Fiscal Policy: Government Expenditure [Replace this area with an image of the “Real GDP Growth” and “Unemployment Rates” graph from your simulation results.] Figure 3.1 [Replace this area with an aggregate demand and aggregate supply (AD/AS) model taken from the course reading or a reputable online source.] Figure 3.2 [Insert your responses to the following: Explain your decision making regarding government expenditure and how it changed based on the macroeconomic conditions. What was the intent of your fiscal policy decisions in response to the given economic climate?] [Evaluate your fiscal policy decisions, including how they impacted key macroeconomics factors such as real GDP growth and unemployment. To what extent did your policies yield positive or negative outcomes?] [Refer to the AD/AS model to support your analysis in this section of your report.] Monetary Policies [Replace this area with an image of the “Inflation Rate” graph from your simulation results.] Figure 4.1 [Insert your responses to the following: Explain how you changed the interest rate levels and how these changes impacted other macroeconomic factors such as inflation, consumption, investments, GDP, and foreign trade. Provide specific examples to illustrate.] [Compare and contrast the impact of your monetary policies 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.] Global Context [Insert your responses to the following: Analyze the impacts of openness to trade in general. Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy? Support your claims with specific details from your course reading.] Conclusions [Insert your overall conclusions about the relevance and significance of macroeconomics. Assess the effectiveness of your economic policy decisions. Did your economic policy decisions produce the anticipated results? Did your macroeconomic principles and models behave in ways that you expected? Provide specific examples to illustrate.] [Evaluate how consumer confidence might have impacted the outcomes of your policy decisions for the economy of Econland. Why is consumer confidence a relevant factor for making informed macroeconomic decisions?] References Mankiw, N. G. (2021). Principles of economics (9th ed.). Cengage Learning. [Add other citations as needed in APA format]. 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 1/8 Project Guidelines and Rubric Competencies In this project, you will demonstrate your mastery of the following competencies: Make decisions informed by macroeconomic principles and the business cycle Determine the economic impact of historical and current events using models of macroeconomics Assess how changes to macroeconomic policies impact the economy Scenario You have just completed your seven-year term as the chief economic policy advisor responsible for managing the economy of the na�on of Econland. You are expected to create a report for the incoming administra�on. In this outgoing report, you will summarize your macroeconomic policy decisions and the economic outcomes for Econland. The purpose of this report is to share the lessons you’ve learned over your term and promote sound macroeconomic decision making moving forward. Direc�ons First, assemble the materials that you will need to complete this assignment: 1. Access the Macroeconomics Simula�on: Econland from Harvard Business Review and select either the Rollercoaster or Stagna�on scenarios. Once you have completed your final year of your seven-year term, you can access the final reports under the Dashboard and Reports tabs at the top of the webpage. You will use these charts, graphs, and other visualiza�ons to illustrate your report in the indicated areas of the template (for example, Table 1.1). Reach out to your instructor if you have any ques�ons about accessing these resources. 2. Review and use the Project Template located in the What to Submit sec�on. The cover page, Table of Contents, and Introduc�on sec�ons of your report are provided and should remain standard in all submissions except where indicated in the template. You should read the brief Introduc�on sec�on, as it provides insight into the purpose and structure of the deliverable, and add the high-level descrip�ons where prompted. There are placeholders in the template for your data visualiza�ons (e.g., charts, graphs, tables, etc.). These placeholders are meant to give you a rough approxima�on of the placement of the visualiza�ons that are required. You should replace the placeholders with the appropriate, indicated images in each case. To create an isolated image from the simula�on data, it is recommended that you use a snipping tool or other image-edi�ng so�ware to copy and paste your data visualiza�ons into the template. See the relevant tutorials in the Suppor�ng Materials sec�on for more informa�on. You are expected to reference any source material used in your report with appropriate cita�ons. To support you, a References page has been added to the project template with the cita�on for the course’s reading already provided. Any other references you add should be cited according to APA format. Once you have assembled the required materials listed above, you can now begin dra�ing your economic summary report by comple�ng the following steps: 1. The first sec�on of your report is the Introduc�on, in which you will personalize the provided content with the par�cular informa�on related to your term (i.e., your simula�on results) as the chief economic policy advisor for the na�on of Econland. Follow the instruc�ons in the template for contextualizing this sec�on, including adding Table 3 from your simula�on report to the indicated area of the template (i.e., Table 1.1). Then, add a two- to three-sentence summary  ECO-202-X6556 Macroeconomics 21EW6 TM https://learn.snhu.edu/d2l/le/content/787598/navigateContent/260/Previous?pId=13891761 https://learn.snhu.edu/d2l/le/content/787598/navigateContent/260/Next?pId=13891761 https://app.readspeaker.com/cgi-bin/rsent?customerid=9568&url=https\%3A\%2F\%2Flearn.snhu.edu\%2Fcontent\%2Fenforced\%2F787598-ECO-202-X6556-OL-TRAD-UG.21EW6\%2FProject\%2520Guidelines\%2520and\%2520Rubric.html&lang=en_us&voice=9568&readid=d2l_read_element_1 https://learn.snhu.edu/d2l/home/787598 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 2/8 simula�on report to the indicated area of the template (i.e., Table 1.1). Then, add a two to three sentence summary specifying which underlying scenario you chose and your overall performance and approval ra�ng. 2. Taxa�on Policies: In the Fiscal Policies: Taxa�on sec�on of your report, discuss the taxa�on policies of Econland for the public and your successor. Within this sec�on, you should add an image of Table 1 from your simula�on results to the indicated area of the template (i.e., Table 2.1). Then, answer the following ques�ons in the paragraphs below the table: Explain your intent for the taxa�on policy decisions you made over your seven-year term. What were the macroeconomic principles or models that influenced your decision making? Iden�fy the impact of your changes to the income and corporate tax rates. How were consump�on 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. (See the Suppor�ng Materials sec�on.) 3. Government Spending: In the Fiscal Policies: Government Expenditure sec�on of your report, discuss government spending policies of Econland for the public and your successor. Within this sec�on, you should add an image of the “Real GDP Growth” and “Unemployment Rate” graphs from your simula�on results and use an aggregate demand and aggregate supply (AD/AS) model to the indicated area of the template (i.e., Figures 3.1 and 3.2). Images of the AD/AS model can be found in the course reading or any reputable online source. Then, answer the following ques�ons in the paragraphs below the figures: Explain your decision making regarding government expenditure and how it changed based on the macroeconomic condi�ons. What was the intent of your fiscal policy decisions in response to the given economic climate? Evaluate your fiscal policy decisions, including how they impacted key macroeconomics factors such as real GDP growth and unemployment. To what extent did your policies yield posi�ve or nega�ve outcomes? Refer to the AD/AS model to support your analysis in this sec�on of your report. 4. Monetary Policies: In the Monetary Policies sec�on of your report, discuss the monetary policies of Econland for the public and your successor. Within this sec�on, you should add an image of the “Infla�on Rate” graph from your simula�on results to the indicated area of the template (i.e., Figure 4.1). Then, answer the following ques�ons in the paragraphs below the figure: Explain how you changed the interest rate levels and how these changes impacted other macroeconomic factors such as infla�on, consump�on, investments, GDP, and foreign trade. Provide specific examples to help illustrate. Compare and contrast the impact of your monetary policies 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. (See the Suppor�ng Materials sec�on.) 5. Global Context: In the Global Context sec�on of your report, you will expand your discussion from the par�cular case of Econland to consider the wider global context. Analyze the impacts of openness to trade in general. Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy? Support your claims with specific details from the course reading. 6. Conclusions: In the Conclusions sec�on of your report, draw your overall conclusions about the relevance and significance of macroeconomics for the public and your successor. Assess the effec�veness of your economic policy decisions. Did your economic policy decisions produce the an�cipated results? Did your macroeconomic principles and models behave in ways that you expected? Provide specific examples to illustrate. Evaluate how consumer confidence might have impacted the outcomes of your policy decisions for the economy of Econland. Why is consumer confidence a relevant factor for making informed macroeconomic decisions? 7. Finally, ensure that all of your sources are properly cited using in-line cita�ons and references according to APA format. What to Submit To complete this project, you must submit the following: Economic Summary Report Your economic summary report should outline the key principles and takeaways of your Econland simula�on for your successor. It should also illustrate how the macroeconomic ideas are relevant to the na�on’s future economic success. Template: Project Template Use this template to submit your economic summary report, and submit it as a Word document. Sources should be cited according to APA style. https://learn.snhu.edu/content/enforced/787598-ECO-202-X6556-OL-TRAD-UG.21EW6/Course\%20Documents/ECO\%20202\%20Project\%20Template.docx?_&d2lSessionVal=x4voSw1ML1xy25Dfmbuvsb3MB&ou=787598 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 3/8 Suppor�ng Materials The following resources support your work on the project: Video: How to Use the Snipping Tool (Beginner’s Guide) (for PC) Use this tutorial for help with snipping, copying, and pas�ng your data visualiza�ons into your project template. A cap�oned version of this video is available: How to Use the Snipping Tool (Beginner’s Guide) (CC). Resource: Is There a Snipping Tool for Mac? Use this tutorial for help with snipping, copying, and pas�ng your data visualiza�ons into your project template. Resource: APA Style Basics Use this resource to support your in-line cita�ons and full references in the References sec�on of your project template. Resource: Board of Governors of the Federal Reserve System Use this resource to support your research for the U.S. Comparisons por�ons of the Fiscal Policy: Taxa�on and Monetary Policies sec�ons of your report. Resource: Congressional Budget Office: Budget and Economic Data Use this resource to support your research for the U.S. Comparisons por�ons of the Fiscal Policy: Taxa�on and Monetary Policies sec�ons of your report. Resource: White House: Economy & Jobs Use this resource to support your research for the Fiscal Policy: Taxa�on and Monetary Policies sec�ons of your report. Project Rubric Criteria Exemplary (100\%) Proficient (85\%) Needs Improvement (55\%) Not Evident (0\%) Value Taxa�on Policies: Decisions Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Explains the intent of the taxa�on policy decisions and provides specific macroeconomic principles or models that influenced the decision making Shows progress toward proficiency, but with errors or omissions; areas for improvement may include providing specific macroeconomic principles or models Does not a�empt criterion 8 Taxa�on Policies: Impacts Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Iden�fies the impact of different income and corporate tax rates, including the effects on consump�on and investment, and provides specific macroeconomic principles to support the claims Shows progress toward proficiency, but with errors or omissions; areas for improvement may include providing specific macroeconomic principles to support the claims Does not a�empt criterion 9 Taxa�on Policies: U.S. Comparison Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Compares and contrasts the impact of the Econland tax policies with current or historical examples in the United States, and includes a discussion Shows progress toward proficiency, but with errors or omissions; areas for improvement may include drawing appropriate conclusions about Does not a�empt criterion 9 https://www.youtube.com/watch?v=2O932t8-k2A https://www.youtube.com/watch?v=sDeAogC7ioM&feature=youtu.be https://www.cleverfiles.com/howto/snipping-tool-mac.html https://libguides.snhu.edu/c.php?g=157152&p=2052916 https://www.federalreserve.gov/data.htm https://www.cbo.gov/about/products/budget-economic-data https://www.whitehouse.gov/issues/economy-jobs/ 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 4/8 about the validity of the underlying macroeconomic models the validity of the underlying macroeconomic models Government Spending: Decisions Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Explains the decision-making process regarding Econland government expenditure and the intent of the fiscal policy decisions based on the macroeconomic condi�ons Shows progress toward proficiency, but with errors or omissions; areas for improvement may include discussing the intent of the fiscal policy decisions Does not a�empt criterion 8 Government Spending: Impacts Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Evaluates the fiscal policy decisions, and explains if the policies posi�vely or nega�vely impacted key macroeconomics factors such as real GDP growth and unemployment Shows progress toward proficiency, but with errors or omissions; areas for improvement may include discussing how the policies impacted key macroeconomic factors such as real GDP growth and unemployment Does not a�empt criterion 9 Government Spending: AD/AS Model Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Refers to the AD/AS model to support the analysis of one’s own fiscal policy decisions Shows progress toward proficiency, but with errors or omissions Does not a�empt criterion 8 Monetary Policies: Impacts Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Explains how changes in interest rate levels impacted other macroeconomic factors such as infla�on, consump�on, investments, GDP, and foreign trade, providing specific examples to help illustrate Shows progress toward proficiency, but with errors or omissions; areas for improvement may include ci�ng specific examples Does not a�empt criterion 9 Monetary Policies: U.S. Comparison Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Compares and contrasts the impact of Econland’s monetary policies with those of current or historical Shows progress toward proficiency, but with errors or omissions; areas for improvement may include drawing Does not a�empt criterion 9 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 5/8 or historical examples in the United States, and includes a discussion about the validity of the underlying macroeconomic models include drawing appropriate conclusions about the validity of the underlying macroeconomic models Global Context Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Analyzes the different impact of monetary and fiscal policies in a closed economy versus an open economy and supports the claims with details from the course reading Shows progress toward proficiency, but with errors or omissions; areas for improvement may include suppor�ng claims with details from the course reading Does not a�empt criterion 9 Conclusions: Principles and Model Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Assesses the effec�veness of the economic policy decisions using specific examples to illustrate the claims Shows progress toward proficiency, but with errors or omissions; areas for improvement may include providing specific examples to illustrate the claims Does not a�empt criterion 9 Conclusions: Consumer Confidence Index Exceeds proficiency in an excep�onally clear, insigh�ul, or sophis�cated manner Evaluates how consumer confidence impacted the outcomes of Econland policy decisions, including why consumer confidence is a relevant factor for making informed macroeconomic decisions Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining why consumer confidence is a relevant factor for making informed macroeconomic decisions Does not a�empt criterion 9 Ar�cula�on of Response Submission has no errors related to cita�ons, grammar, sentence structure, spelling, or organiza�on and integrates all required tables and figures correctly Submission has no major errors related to cita�ons, grammar, sentence structure, spelling, or organiza�on preven�ng understanding of ideas Submission has major errors related to cita�ons, grammar, sentence structure, spelling, or organiza�on preven�ng understanding of ideas Submission has cri�cal errors related to cita�ons, grammar, sentence structure, spelling, or organiza�on preven�ng understanding of ideas 4 Total: 100\% 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 6/8 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 7/8 8/15/2021 Project Guidelines and Rubric - ECO-202-X6556 Macroeconomics 21EW6 https://learn.snhu.edu/d2l/le/content/787598/viewContent/13891779/View 8/8 Reflect in ePortfolio Download Print Open with docReader Task: View this topic Activity Details https://learn.snhu.edu/d2l/le/content/787598/navigateContent/260/Previous?pId=13891761 https://learn.snhu.edu/d2l/le/content/787598/navigateContent/260/Next?pId=13891761 javascript:void(0); 2 ECO 202 Project Template Economic Summary Report Table of Contents 1. Introduction 2. Fiscal Policies: Taxation 3. Fiscal Policies: Government Expenditure 4. Monetary Policies 5. Global Context 6. Conclusions 7. References Introduction To benefit the incoming administration, I submit this report to document, analyze, and interpret the macroeconomic policy decisions I made as to the chief economic policy advisor of Econland. The purpose of this document is to further our national prosperity by deepening our understanding of the relationship between macroeconomic policies and their consequences for our citizens. The report includes a thorough accounting of the significant fiscal and monetary policy decisions made over each of the seven years of my term, as well as an explanation of the underlying rationales for those decisions and the resulting impacts of those policies. Table 1.1 The table above summarizes the macroeconomic climate of Econland over my term. I have, over my term, used macroeconomic policies to achieve almost full employment alongside a high sustainable economic growth through an improving GDP over time. The balance of payments is favorable, as seen from the simulation table indicating that our exports outshine our imports. Generally, I would rate my general performance as atop nine over ten perfectionists Fiscal Policy: Taxation Table 2.1 In the Econland economy, we have employed various taxation policies for different purposes. We have taxation policies to generate government revenue. It is these taxes that will finance the government to provide public goods to the citizens. We have also used taxation policies to bring about equity in our citizens’ wealth and income distribution. Over time; largely, our economy has been controlled by the demand and supply forces interplay. We have ensured minimal government interventions to ensure the free market ecosystems run smoothly. We have used models such as laissez-faire economics which advocate for minimal or no government supervision in economics. Our economy has embodied aspects of both capitalism and communism to ensure that the market corrects itself and that we reduce the exploitation of society by the wealthier and resource owners. Taxes have had the result of increasing the amount of government revenue available for spending. An increased government spending has fueled consumption. More money was put into the pockets of the people of Econland hence spiking an increased consumption. Increased consumption means that the demand for goods goes up. Thus, prices go up similarly. To keep the prices manageable for every citizen, we had to reduce taxes and government sense to lower prices. Taxation also has enabled us to control the quality of goods moving into our country and has spiked competition alongside ensuring a high quality of goods in the market. Additionally, our taxation policies shad the effect of sponsoring increased investment as more money is made to the banks, and people had to borrow more and invests more given a high government spending Fiscal Policy: Government Expenditure Figure 3.1 [] Image credit: Figure 3 in “Building a Model of Aggregate Demand and Aggregate Supply by OpenStax College, CC BY 4.0 Figure 3.2 Our decisions were mainly affected by the interplay of aggregate demand and supply curves. Overall, we used government spending to control overall economic growth. Burkhead & Miner (2017) argues that government expenditure is vital in maintaining the macroeconomic aspects of an economy. The graph above is a typical representation of the behavior of supply and demand curves in our economy. Whenever the price in Econland rose above the equilibrium, we decreased government spending. It had the effect of reducing the amount of money in circulation; less is available to pen. This, in turn, has the effect of lowering prices. While for a deviation decreases, the equilibrium price prompted us to increase government spending, increasing money in circulation, and raise prices. We also used state expenditure to offset competition in the market amongst private agents and ends ended up raising the quality of goods produced We also, over the years, have been employing various fiscal policies. They have played different roles in our economy. We used price level limitations or ceiling price limits to ensure that citizens are not exploited by exploitive businessmen in various situations, mainly in shortages. They have also played a key role in encouraging investments. This is by creating a conducive environment for business people; hence they are motivated to do business. This has been done by reduced taxes and incentives to set up companies to keep the economy flourishing. Policies have also played a key role in increasing income distribution among our people. This increases their purchasing power. We also have to employ an approach to boost various outputs in different sectors of our economy, for instance, the incentive to farmers by offering them subsidized fertilizers to increase production. Just as other countries of the works do, our policies have yielded benefits in various ways. Expansionary policies such as tax cuts and increased government spending have a way of spurring economic growth through the increasing amount of money available for spending (Jayaraman & Narayan,2011). This increased spending creates a market for goods and services, shifting the demand curve to the right, showing a positive change. Contractionary policy may involve tax increased and decrease government spending. It withdraws more money from circulation, and hence less is available for spending. It might also be a way of raising money locally while reducing public debt, and the government may also issue bonds. Hence less money is left within the public. These policies have successfully succeeded in our economy-boosting our Gross Domestic Product. Monetary Policies Figure 4.1 Interest rates played a vital role in the management of Econland. We have been using the Central bank of Econland to control the interest rates. By various policies, we have had to hold interest rates by increasing or decreasing taxes depending on the current economic status. When we raise the borrowing rate of commercial banks from our central bank, the interest rate increase. The same is proportional to decreased rate of banks. High-interest rates discourage spending in most circumstances, while low-interest rates encourage consumption when people borrow more and spend more. The number of goods to be purchased or the purchasing power increases with decreased interest rates. Investments also have been inversely proportional to the interest rates. Interest rate, when increased and when decreased, can have effects on the overall GDP. Increased interest rates have the effect of discouraging foreign investment. Increased rates discourage exports but encourage imports. The many macroeconomic policies that are valid in the US platform are as important they were years ago. These policies are equally working as they used to work years ago., the use of stock exchange, market to control interest rates, and even banks to control financing spur effects equal to which they used to reflect years before. They work perfectly to maintain the economy for both domestic and foreign investments. Global Context Openness to trade allows capital accumulation in a country. It attracts foreigners who come and set up businesses in given a country hence boosting the economy of such a country. It leased to more effective access to commodities. It spurs competition among companies by keeping the prices at bay and making them affordable to almost all people in the economy. Openness to trade also makes it easy to transfer technology and production methods from one country to another. However, it has the disadvantage that comes with it. Its disadvantages are several. Openness to trade risks a country’s currency in that it becomes easy to manipulate it. The aforementioned is evident in the US, where the Chinese goods are cheaper than the home good is a risk to the integrity of the country’s goods. Openness to trade is a way of selling short-term gain for long-term problems. Trade-in natural resources sound like corruption other evils in society. It also makes it sit difficult for the local goods to penetrate the market due to international competition. There is also the possibility of smuggling harmful goods into the country, and this is unsuitable for the country, not to forget, killing the local markets (Future of Working,2021). Conclusions In conclusion, the various economic policies we employed in the economy worked perfectly, from fiscal policies to monetary. On a general grid, our models were propelled towards economic growth and development. We also focused on availing affordable prices for customers while ensuring quality goods in the markets. This was allowing the market to self-regulate with minimal government intervention needed. Our inflation rate has also been kept at minimal rates despite the gradual natural inflation rates. Policies on the supply side’s labor have ended, reducing unemployment by spurring an increased economy. We have also succeeded in keeping the BOP positive by ensuring that exports are higher than imports. This means we export more than we import. The overall effect was a benefit to the citizenry and files by employing many policies. The c The consumer effect is a measure of how consumers perceive the general performance of the economy. It was a play factor in the economy of Econland. It’s an indicator of the economy’s performance. It is this factor that most influences their decisions. It is this consumer confidence that the businesses and companies use to plan the activities; hence a positive impact spurs positive economic growth. A negative indicator might delay projects, therefore, slowing down the economy (Yahoo finance,2021). References Burkhead, J., & Miner, J. (2017). Public expenditure. Routledge. Dean, E., Elardo, J., Green, M., Wilson, B., & Berger, S. (2020). We are building a Model of Aggregate Demand and Aggregate Supply. Principles of Economics: Scarcity and Social Provisioning (2nd Ed.). Future of Working,2021 19 Advantages, and Disadvantages of Free Trade accessed from https://futureofworking.com/6-advantages-and-disadvantages-of-free-trade/ on 16th July 2021 Jayaraman, T. K., & Narayan, P. (2011). Issues in monetary and fiscal policies in small developing states: a case study of the Pacific. Commonwealth Secretariat. Mankiw, N. G. (2021). Principles of economics (9th ed.). Cengage Learning. On 16th July 2021 Yahoo fiancé 2021 Why consumer confidence is an important economic indicator accessed from https://finance.yahoo.com/news/why-consumer-confidence-important-economic-170019558.html