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Current Macroeconomic Situation in the U.S - Research Paper Example

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The paper talks about the current macroeconomic status of the United States as well as objective way to mitigate the effects of the economic recession. It is established, that the solution of the issue of macroeconomic challenges in US is in utilization of the mix of monetary and fiscal policies…
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Current Macroeconomic Situation in the U.S
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Current Macroeconomic Situation in the U.S

Download file to see previous pages... This paper is one of the best examples of the thorough analysis of the macroeconomic situation and the most pressing economic issues in the US. The 2007/08 economic downturn culminated in major socioeconomic problems all over the world. The United States was affected in a similar way like other countries globally. The economic recession of 2007/08 culminated in a number of macroeconomic problems. The United States was grappling with issues of increased inflation and unemployment. The two stood at approximately 4% and 10% respectively.
The increased administration cost has been blamed for the challenge. The ministry of defense has for instance been said to spend billions of dollars annually putting more pressure on the economy.. The country is still grappling with issues of increased mortgage loans which have denied citizens an opportunity to own houses. However, the gross domestic product (GDP) has remained fairly stable despite changes in the economy.
Two main monetary policies will be used to address the issues of unemployment and inflation. The expansionary and contractionary monetary policies are used in the mitigation of unemployment and inflation respectively.
Apart from monetary policies, fiscal policies may be used as well. This mostly refers to the government’s revenue collection and spending which latter affect the economy. For instance, increased inflation would force the government to apply the contractionary fiscal policies. Under this, the spending of the government would be under check ...Download file to see next pagesRead More
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