Help Needed

[Coaster 2086]

Assume that the national government wants to switch from a surplus to a deficit and they do this by lowering taxes - but they maintain spending.

 

What impact does this have on GDP (nominal), employment, Wage (real), and investment?

[Coaster 2086]

Also national saving and interest rate (real)

[Coaster 2086]

Please help

[ARCHITECUS 4788]

the govt must WAAAAAAAAAAGH!!!!

[Coaster 2086]

Help

[Fireheart 2777]

Well in regards to money and applying this to LoTC it would basically mean you borrow something from someone or someone gives you something to help you out without asking for anything in return. That is if you do not want to do anything to screw up the economy. If you wanted to you could lower income for the lower income class, but they would get mad and probably flock over to a group that did a better job than you.

 

Just let me know if you want a real world perspective on this question.

[Coaster 2086]

Im not asking about ******* lotc are you mad

[Coaster 2086]

business level macroeconomics does not apply itself to the minecraft roleplay fantasy realm of vailor

[lemontide331 1615]

[Fireheart 2777]

I was asking since this wasn't in an off-topic forum section, apologizes. 

 

As far as real world factors, it's way more complex and I am not knowledgable enough to go into detail. Though if they did such actions I would assume the value of their currency would drop among other things.

[Coaster 2086]

shitty answer worst vassal and terrible ally 0/10 would not reccomend in schism war...

[Coaster 2086]

10,000 mina to the man with the plan

[Sneaky 189]

 GDP (nominal) go up,  employment assuming nothing else changes it would stay the same, Wage (real) increase? Taxes go down which would be an incentive for business to increase wages, and investment? eh Idk about that I start micro economics in two weeks. 

DoNt MaKe FuN oF mE

[Coaster 2086]

this is macroeconomics can u explain why for each please

and not for hw i am an adult goddamit

[aron. 427]

why would a country want to put themselves at a deficit? That pretty much equates to them spending more money than they have. I guess it kind of depends on how the country is using this money to put themselves at a deficit. (i wont pretend to know **** all about national budgeting) 

 

is there anymore to the question? If a country is investing more money than they have, putting them at a deficit, they likely expect those investments to mature well. There's no reason a country would put its self at a deficit if it didn't see something to gain.

 

You'd likely know better if you're taking a course on this **** 

 

edit: or ****, I guess they could just be spending more on everything in general... alright, well as it turns out I don't know **** about economics.