Problem
1. In 1968, the U.S. government ran a budget deficit of $25 billion. The unemployment rate at the time was less than 4 percent. How does economic theory suggest that this policy would impact income and prices? Review the historical record as to its consistency with economic theory.
2. Suppose that you were a presidential adviser. Would you recommend that the government plan a balanced budget, a deficit, or a surplus next year? Defend your position. Would you implement fine-tuning?
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.