Country Pros- Erehwon rich mineral deposits, good climate for agriculture, fresh fruit, iron ore, processed foods, bauxite and magnesium, tourism.
Country Cons- lack of infrastructure i.e. roads and rail ways to connect to other countries, and ports for shipping, poor banking system and communications
GDP-39.2 billion GDP real growth rate 4.5%
My decision will raise real GDP, put more into education and infrastructure. Hopefully the increase will lead the lowering of the unemployment rate. Inflation will stay the same.
I should have increased spending on gov’t expenditure and not as much on education.
One change in fiscal policy can change the whole system. My decision to make changes in taxation and inflation was a bad decision. Tried to slow the economy, but also tried to keep business sentiment by issuing statements that the economy was good. Positive sentiment has contributed to an increase in output and incomes which has lead to rising inflation.
Economy trends in Erehwon-
1. GDP- decline in 2001, 02, 03 due to economic crises effected Erehwon’s major trading partner
2. Economic indicators- unemployment, budget deficit, inflation, real GDP growth rate
3. Expenditure and Taxation- total gov’t expenditure, total tax revenues
4. Labor force- combo of skilled and unskilled labor 40% in agriculture, skilled labor skewed toward construction.
Made a change in Gov’t spending to 200 mill
Decreased money spent on education, and put more towards the building of infrastructure to create more money and create more jobs.
In my work place I can take what I have learned from this simulation and put my self in the position of the decision maker. I will look at what would be economically better for my company financially. Were ...