Changes to fiscal policy in the simulation varied based the decision implementation and current economic status. If income taxes increased too much then popularity decreased however, income tax increases helped to control inflation. Unemployment seems to have the most dramatic and negative impact on popularity.
For the for year 2XX6 scenario, the challenge was to increase incomes and decrease unemployment, thus increasing overall confidence in the economy. The ultimate goal was to avoid a recession. The decisions implemented allowed for 200 million toward infrastructure as well as education programs for low- income students. The income tax increased by .50 percent, which helped inflation without severely damaging popularity. These decisions produced an ideal president rating.
In the next year 2XX8, the goal of the government of Erehwon is to reduce rising inflation as well as decreasing foreign debt. Unemployment is low so that contributes to a good popularity rating. The decisions applied were to decrease government spending on infrastructure by 200 million and education for low-income students decreased by 400 million.
This change increased unemployment, but accomplished the goal of reducing the rate of inflation. The income tax rate was increased by only .50 percent, further reducing inflation. The implementation of these decisions created a well- ruled judgment.
For the third and final scenario, the year is 2XX9, and Erehwon government was again facing a possible recession. Government measure to slow down the economy have been successful but to a fault, slowing it down too much. Unemployment was up while incomes were down. Economic output of Erehwon is suffering as well as public opinion of the government. This time the government made the following choices: reduced spending on infrastructure by 200 million, expanded spending on education by 400 million, and finally cut taxes by .50 percent. The outcome accomplished the goals...