Scenario 1: The government is currently spending three billion, one hundred million on programs and brings in three billion, five hundred million through taxation. Does this create a budget surplus or deficit? Explain.
As a member of Congress, what changes would you suggest to fiscal policy to balance the budget? Explain at least two ways you would use the tools of fiscal policy to balance the budget by recommending an "increase" or "decrease" to each tool in your explanation.
What are the benefits and opportunity costs of the changes you propose? Consider the impact on economic growth, price stability, and unemployment.