a. The four economic targets within the Chancellor's context are low inflation, low unemployment, a high and stable unemployment rate, and a strong balance between imports and exports, (Biz/ed 2008). These do prove feasible based on the fact that these four points cover a large portion of the economy, thus focusing on center points rather than secondary issues.
             b. The policy which is most relative to FISCAL tools is that Government expenditure. According to the Chancelor's office, the government expenditure budget was £394,000,000,000. Adjustment and allocation of these funds present one of the major aspects of the governments FISCAL plan. What the government spends then affects various aspects of the economy.
             c. If the income taxes were raised nine percent, there would be drastic changes to the current economic status. Although inflation would drop, unemployment would reach much higher levels. Along with this, national income would see a slow decrease, while economic growth would plummet and then shortly regain its strength.
             d. When the government spending is increased by 25% in all areas in the model, there are particular affects. Economic growth will first excel and then plummet. Inflation would then greatly increase and then decrease. Along with these trends, the national income would slightly increase, only to decrease again in 2010. Yet, unemployment would drop until 2007-2008. Yet if government spending was cut by 25% in all three areas, there would be much different outcomes. National income would initially drop until it begins to rise again to surpass in 2009. Economic growth would see a sharp decrease followed by an eventual increase. Unemployment would reach record highs, followed by a sharp decline; while inflation would drop followed with a sharp increase.
             e. These results prove that whatever decisions be, the initial affect does not always play out. In many cases, there are extre...