You are the Chief Economic Advisor of the President of Dreamland. Right now the country has unemployment of 5.0 % . The country has suffered a severe recession few years ago and it is showing some signs of slow growth lately but lot of people are still out of jobs causing low aggregate demand, federal annual budget deficit is about $ 500 billion a year and a national debt of $19 trillion. Some manufacturing companies are moving out of the country in search of cheap labor and the ones at home are not doing as good and some big ones like auto are trying to cope well after coming out of bankruptcy . Energy , food and commodity prices are relatively low causing some relief on the inflationary pressure in the economy but the housing market is in trouble with lot of foreclosures leading to a lot of Bank failures . Dreamland is also facing a huge trade deficit and approaching fiscal cliff .The income inequality between the rich and the poor is increasing causing some social unrest in different parts of the country. The President wants your smart advice. He wants to turn things around real fast and get the economy back on track with your help!
Advise your President in detail to save your job and get a good grade.
What would happen to his attempt to attain a balanced budget?
How would the President tell that his economy is approaching equilibrium or getting better?