Use the economic model from class to explain how raising ded (total dollar amount allowed to deduct (subtract) from gross income to get income subject to Federal income taxes) would impact each U.S. variable: component of planned aggregate expenditures that would be most directly impacted, planned aggregate expenditures itself, real GDP, nominal interest rates, unemployment rate, employment to population ratio, labor force participation rate, government budget deficit (explain how raising ded itself would directly impact budget deficit), balance of trade surplus (explain how movement in real GDP would most directly impact trade surplus).State whether each variable would decrease, increase, or not change, and why. Writing assignment is to be typed or printed, double-spaced, size 12 font, and no more than three pages.
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