Discussion Board Topic – Macroeconomics

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This is only a Discussion Board Topic.

Try your hand at balancing the federal budget by using Nathan Newsman’s National Budget Simulation (Short Version-2006) at http://www.nathannewman.org/nbs/. Answer the following questions:

 

  1. Develop a budget and see what happens. Were you successful in balancing the budget? If not, how much of a deficit or surplus did you end up with? What does this exercise tell you about the process of creating a balanced budget?
  2. Reexamine the budget cuts or increases you made. What problems would such changes pose for a politician facing reelection?
  3. This budget simulator allows you only to change spending and tax expenditures over a one-year period. This poses what problems to finding a realistic economic solution?

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