How do you assess the current condition of the economy

Misc. short answer macroeconomic questions

1. How do you assess the current condition of the economy? What are the strength and weaknesses? What policies do you regard as appropriate in directing economic performance going forward over the next four years? Please give a detailed answer.

2. From an economic perspective, what do you believe are the two most urgent issues for the country (or economy) today? How would you address these issues in the short and long term?

3. Over the last 4 years, several tax cuts have been implemented. Please discuss the potential benefits and costs of such fiscal policies, especially in a case in which spending is exclusively financed by government borrowing.

4. The Federal Reserve Board applies monetary policy by affecting short-term interest rates. But changes in the Federal Funds Rate Target may not have an impact on long-term interest rates (for example mortgage rates) right away. Please explain why this may be the case.

5. Finally, the AIDS epidemic has a drastic impact on countries in Africa. For a number of countries, the infection rate of the population has increased dramatically. What effect will this tragedy have on the economies of these countries? How should governments react and what economic policies should they implement?


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