|Instructions: In a brief 1000 word essay, write a policy memo answering the question posed
below. You answer should explain:
1. What model is best fit to address the policy question,
2. Reasons why the model is appropriate to address the question,
3. How the model can be used to answer the question, and what answer it gives,
4. Any empirical evidence on the predictions of the model that either confirm or refute
the model’s predictions, and
5. Reasons why or conditions under which the assumptions of the model may be inappropriate
for this particular application.
Essay Question: Senators from both political parties have expressed concerns over the recent
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