U.S. Federal Government and Economic Issues

explanatory Essay
1227 words
1227 words

This paper relates to what I have learned in the Macroeconomics class. For this final term paper; I will write about the U.S. federal government operations and how government leaders handle macroeconomic issues in our economy. We will discuss a couple of current economic issues and what the federal government is doing to reach solutions. I will also address U.S. unemployment issues, international trade, fiscal and monetary policies, and methods of alternative energy, along with the Federal Reserve’s role to confidently curb recession and avoid inflation The U.S. federal government is actively involved in assuring national security through counterterrorism techniques. They perform strategic planning to give surety of macroeconomic financial stability, and economic development. Government provides financial, political, and social stability in our economy and controls macroeconomic aggregate demand and aggregate supply. Congress and the President control fiscal policy. The Federal Reserve has complete control of the monetary policy. “Fiscal policy is the changes that Congress and or the President make in taxes and public spending that has an impact on the national Gross Domestic Product (GDP) data.” (O’Sullivan, p.212) The GDP (commerce) data is the total market value of domestic goods and services produced only within the geographic area of a country on an annual basis. In accordance to an eHow Contributor, Shane Hall, 2011, reports that, “the burden of various types of taxes distorts funds in the marketplace because the expenses affect the cost and income of goods and services. In the supply side of economics, an increasing tax rate will affect the economic activity and hinder the growth of the economy. (Hall, 2011) In connection ...

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...rd of Governors of the Federal Reserve System (FBR), Release and last update March 15, 2011, Press Release: FOMC statement

Ensinger, D., June 20, 2011 - 8:40 AM, “Bill to Repeal NAFTA Stalled in the House,” Copyright 2007 Economy in Crisis

Heffner, T., June 20, 2011 – 10:05 AM, “Unethical Predatory Practices,” Copyright 2007 Economy in Crisis

Miller, R, L., (2010), Economics Today, (15th edition), Boston: Pearson Addison-Wesley

Petruno, T., June 18, 2011, U.S. Economy: Federal Reserve: “More Fed Stimulus? - Don’t Count on It!” Copyright 2011, The Los Angeles Times,0,5811817.column

In this essay, the author

  • Explains that they will write about the u.s. federal government operations and how government leaders handle macroeconomic issues in our economy.
  • Explains that monetary policy is the regulation of money supply and interest rates to stabilize currency and control inflation.
  • Explains that the u.s. federal reserve monitors and controls monetary policy, national income, price stability, recession, and inflation. top leaders are working better at applying inside time lags in economic policy.
  • Explains that the monetary system conducts ‘trustworthy’ international trades with foreign countries to assure the value of the u.s. dollar.
  • Cites anthony, p., ib economics: (section 3. 1-3.2) macroeconomics: national income and introduction to development, and (gdp image), 2011.
  • Cites ensinger, d., "bill to repeal nafta stalled in the house," copyright 2007 economy in crisis.
  • Explains that heffner, t., “unethical predatory practices,” copyright 2007 economy in crisis.
  • Opines that more fed stimulus? - don’t count on it!
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