The government of Jordan aims to expand its economy by increasing spending in key sectors like construction, tourism, and exports. This expansion of fiscal policy would have the following impacts: 1. It would increase employment levels by promoting local industries, strengthening ties with other countries, and boosting sectors like agriculture and public works. This would reduce poverty and increase foreign investment. 2. Income levels would rise through job creation, improving product quality, strengthening Jordan's economic independence, and increasing exports. 3. Consumption levels would be boosted by utilizing natural resources, developing policies to manage consumption, maintaining financial compliance, and ensuring security and fiscal surplus without issues with the balance of payments.

1. Question Title
Government Spending
Question Description
The Case:
Jordan is an independent Arab kingdom in Western Asia with population of almost 11 million
people. Jordan has a high Human Development Index with ranking of 102. The country has a major
tourist destination and attracts medical tourism due to its well-developed health sector. Suppose
Government of Jordan adopts expansionary fiscal policy to expand its economy further. For this
purpose, government increases its expenditures in construction sector, tourism sector, and other
export related industries.
Requirement:
Being a student of macroeconomics, discuss the impact of increase in government spending on the
employment level, income level, and consumption level of the people of Jordan.
Note: Be specific in your answer. Write to the point in your own words. Avoid irrelevant details. Do
not copy paste from various blogs or internet answers. It will be marked as zero.
Solution:
Introduction:
Jordan is located in western Asia that is near Jerusalem, Syria. It has enjoyed a good geographical
location in western countries. It is frequently developing in various sectors. Additionally, Jordan’s
governmental policies may assist people to take multifarious steps to provide them opportunities.
Employment level, consumption level, and income level are principal sources of enhancing any
country’s economy. In brief, Jordan adopts various strategies to expand its fiscal policies:
Governmental Policies to Enhance Economy
1. Sources of Employment level
 Promote local industries
 By providing employment countrywide
 Forming relations with international countries
 Enhancing agricultural and other public sectors
Local industries, agricultural and public sectors must be endeavored to facilitate its country’s
economy, as people would get a good standard. People who are facing various issues will be revoked
by promoting the employment level.
 Impacts on Employment Level
 To overcome poverty
 Low import and high export
 High foreign direct investment
 Job opportunities and employment
Numerous opportunities may bring prosperity and progress in societies at the local and international
level that directly helps a country’s progress.

2. 2. Sources of Income level
 To make good administration policies
 To promote its domestic products
 To promote tourism
 Adoption of international policies to strengthen the economy
Income can be achieved via good administration policies, promoting domestic products, supporting
tourism etc. None will spend their lives under the poverty line or hand to mouth.
 Impacts on Income Level
 Increment in job opportunities
 To move towards the quality of goods and frequently enhance the quality of its
product
 To become an independent country in terms of income policies
 High export in the international market
Good opportunities may give rise to a good standard of living.
3. Sources of Consumption Level
 Good use of natural resources
 Making multifarious policies to overcome huge consumption
 To ensure to remain on the FATF list
Consumption of natural sources and utilization of other sources of living may promote indigenous
values. Furthermore, it will be very helpful for a country that would stand at the top of the list of
development. So, it must follow the world's standard policies. People should take the bull by the
horns and should ensure the use of sources positively.
 Impacts on Consumption Level
 Enhancement in technology and finding easy methods to promote local technology
 To urge public sectors to promote accountability
 To ensure security and stability
 Fiscal surplus
 No issue with the balance of payment
Consumption of products at the local and international level determines the positive image of Jordan
before the global market.
4. The Way Forward
To follow international and documented business methods that will elevate a country’s economy.