Determine what will be required to make the solution happen


Problem

Creative problem-solving scenario: Assuming that the rate of growth in the US economy is currently 0.5% annually. Your mission is to increase our growth to at least 4% annually, without setting off unacceptable levels of inflation. You have the tools of Fiscal and monetary policy available.

FOCUS ON INCREASING THE QUANTITY AND/OR QUALITY OF NATURAL RESOURCES AS A MEANS TO STIMULATED ECONOMIC GROWTH

A) Present your solution to the problem in this manner:

i. First, identify the specific natural resources and think through how having more of it or a better quality of it could lead to significantly increasing the GDP growth rate.

ii. having done that, state a general solution to the problem.

iii. Determine what will be required to make the solution happen, (typically it is money)

iv. Now, think of ways to use any fiscal and monetary policy tools to get the needed money.

v. MAKE USE OF AT LEAST ONE FISCAL AND ONE MONETARY TOOL TO ANSWER THIS QUESTION

B) Write down the names of the one fiscal tool and the one monetary policy tools you picked.

C) I need a detailed explanation of why you picked the tools (that is the Fiscal and monetary tools) and why you did not the other Fiscal and Monetary tools.

In answering this question explain what is good about the tools you used and what is not good about the other tools (both for the fiscal and the monetary tools)

D) Thoroughly and completely explain how your solution would work to solve the problem and indicate the impact your solution would have on the key economic variables using up or down arrows. Please, present your answer using chain of event format. Please, be as detailed as possible.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine what will be required to make the solution happen
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