Question: What is the \"current macroeconomic situation\" in the U.S. (e.g. is t

Question

Question: What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?

1. Write your individual answers to the questions listed above together in essay format (minumum of 300 words combined in APA style), using correct economic terms covered in the discussions. If you only write 300 words, you probably won't be able to fully answer the questions. Use the APA Template in Doc Sharing as a guide. You will also find the grading rubric for this assignment in Doc Sharing.

2. Key concepts to include in your paper--data trends on unemployment, inflation, GDP growth, expansionary fiscal policy tools, FOMC, easy money policy tools and other terms from this class.

3. You must use at least one article. Note: The textbook is not an article and cannot be the only source for the assignments. Use the DeVry Library as a resource for finding your references.

Explanation / Answer

Well, the current 'macro' (overall) situation for the US is...A continued
slow growth economy for the 4th year in a row, where growth is so slow the economy threatens to slip back into recession, with historically very high unemployment/ under employment. The monetary/ fiscal policy is 'expansionary' trying to put money and cheap credit into the hands of the public to 'buy' and create demand/ more growth. However the policy is blocked by the high/ continuing high unemployment/ under employment which cancels it out.
The national government remains 'gridlocked' and currently is shut down with the minority political party holding 1/3 of the seats able to block the elected government holding 2/3 of the seats from acting in anyway to help the economy, with the seeming aim to put the economy into recession to allow the 1/3 thereby to return to power. US taxes especially on the wealthy continue extremely low and lax and thus the US government does take in enough from it's people/ business to pay it's bills or to invest in the country. The US government deficit is very high and the US remains the biggest borrower on world markets with a reduced credit rating.
The US GDP is slowly improving but remains almost stagnated in the $14-$15 trillion range for the 4th year in a row, showing slow growth, but the US population and the population of it's young job seekers grows faster than that.
US and foreign investors continue to 'shy away' from capital investment in the struggling US in favor of better short term profit opportunities in Asia/ East Europe etc.

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