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You are the Chief Economic Advisor of the President of Dreamland. Right now the country has unemployment of 7.7 % . 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 , federal annual budget deficit is $ 1 trillion a year and a national debt of $16 trillion. Its currency also has lost a lot of value against major foreign currencies creating a backlash from other major trading partners recently. 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 also relatively high and going higher , leading to some inflationary pressure in the economy and 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 President wants your smart advice. He wants to turn things around real fast and get the economy back on track with your help.
1. Advise your President in detail to save your job and get a good grade.2. What would happen to his attempt to attain a balanced budget ?3. How would the President tell that his economy is approaching equilibrium or getting better ?
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