Assignment 4, fall 2018 Please go once again to the Macro Policy Simulation. You may work in teams of two if you like, turning in the same final printout (with your own name on it). However, the answers to the questions below should be completed individually. http://www-01.glendale.edu/mmaier/macropolicy/This time you will play the simulation in two different scenarios.1. For inflation scenario, choose Fiscal and Monetary Policy Run the simulation again until you are satisfied with the results remembering that you will face trade-offs. A. What were the main problems in the economy when you started? How well did you resolve those problems? What problems remain? Why did those new problems occur (explain using economic theory)?B. For the first and last year in the simulation, describe your thought process in choosing each of the fiscal and monetary policy numbers. If some numbers are larger than others, or some positive and some negative, explain why. If you left a policy at zero, explain why.C. Then choose another year in which your fiscal and monetary policies were different from the policies described in question B. Explain each of the fiscal and monetary policy choices in this year.2. Choose a new scenario (not depression or inflation). Then choose Fiscal and Monetary Policy with random shocks Run this scenario twice with different policy choices. Print out both results.A.B. Choose one year from each run of the scenario. Describe your thought process in choosing each of the fiscal and monetary policy numbers. If you changed your numbers, explain why you did so. If some numbers are larger than others, or some positive and some negative, explain why. If you left a policy at zero, explain why.C.
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