Econ Paper Unused/ Original Work 900 word minDue Friday 6/6/14Two important pol

Econ Paper Unused/ Original Work 900 word minDue Friday 6/6/14Two important policy goals of the government and the Fed are to keep unemployment and inflation low while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that all the variables be timed perfectly.Part 1:Assume that the country is in a period of high unemployment interest rates are at almost zero inflation is about 2% per year and GDP growth is less than 2% per year.Include the following concepts in your discussion:Part 2:Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?