Question 1: Explain the pros and cons of using a change in the tax rate to achieve the desired increase in output. Be sure to thoroughly explain how the change will affect equilibrium prices, output, and unemployment.
Question 2: Explain the pros and cons of using a change in open market operations to achieve the desired increase in output. Be sure to thoroughly explain how the change will affect equilibrium prices, output, and unemployment.
Question 3: Describe the relationship between deficits and the national debt, and how each relates to the health of the economy.