Reference no: EM13984238

Creative problem solving scenario #1: The rate of growth in the US economy is currently 0.5% annually. Your mission is to increase our growth rate to at least 4% annually, without setting off unacceptable levels of inflation. You have the tools of fiscal and monetary policy available. ****Focus on increasing the quantity and / or quality of natural resources as a means to stimulate economic growth.**** a. Present your solution to the problem – write it down. i. Strategy for creating your solution: 1. First identify a specific natural resource and think through how having more of it or a better quality of it could lead to significantly increasing the GDP growth rate. 2. This will lead you to a general solution to the problem. 3. Determine what will be required to make the solution happen, typically it is money. 4. Think of ways to use your fiscal and monetary policy tools to get the needed money. 5. To attack the problem you must select at least one Monetary Policy tool and one Fiscal Policy tool. b. Write down the names of the one fiscal policy tool and the one monetary policy tools you picked. i. Remember – for this question you need one Fiscal Policy tool and one Monetary Policy tool. c. Explain why you picked the tools that you picked and why you did not select the other choices. i. Specifically explain, what is good about the tool you selected and what is not so good about the tools you did not select? Do this for both the monetary and fiscal policy tool that you selected. d. Thoroughly and completely explain how your solution would work to solve the problem, and indicate the impact your solution would have on the key economic variables using up or down arrows. Please present your answer using a chain of events format. Be specific.