Oil, taxes — and big problems for Russia’s economy
The article discusses the ever-continuing impact of falling crude oil prices on the Russian Economy. Russia is facing a steep decline in Export Revenues resulting in huge Fiscal Deficit. The slowdown in Economic growth combined with the rising Fiscal Deficit is pushing the Government to increase Taxes.
Topics include Taxes (T), Export Revenue (X), Fiscal Deficit, Fiscal Policy and Economic Growth. Use the National Income equation and AD/SRAS, LRAS diagrams to explain the role of above-mentioned contributing factors for the current condition of the Russian Economy.
Evaluation will cover implications of a Contractionary Fiscal Policy on National Income, Unemployment Levels and Inflation. Consider short term and long-term impact on Consumers, Producers, Society and Government.