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.
