The Importance Of Macroeconomics: Social Responsibility

Quiz 4; Social Responsibility

Macroeconomics has furthered my understanding for informed citizens. Individuals in power, whether it be the president, the senate, the house or the Federal Reserve, hold a great deal of power in this nation economically speaking. The state of the nation’s and world’s economy affects everyone, multibillionaires to the lower middle class. It is extremely important to understand the current economy and to self assess the future to better one’s own finances. As defined in class, Macroeconomics is the study of the economy as a whole, i.e., the causes and relationships between important economic indicators such as unemployment, inflation, and the aggregate level of output or income, and the interrelationship among different economic sectors. It is highly important for citizens of the United States to understand how to view these economic indicators in order to be informed citizen- not just repeating what was said on the cable news networks. Every legal citizen of the United States has the power to vote starting at their eighteenth birthday. Local elections, state elections and federal elections all play a roll in that person’s life which makes it important to

The Federal Reserve, FED for short, controls monetary policy. Monetary policy is essential to assure economic stability as the FED can act quickly, anonymously from the red tape found in Congress this day in age. For example, it was the FED that first responded to the financial meltdown the United States is just recovering from. In 2008, the Federal Reserve system then chaired by Ben Bernanke, added 800 billion USD to the economy through monetary stimulus. It took Congress and the president several more months to getting around to 800 billion USD in fiscal