Click the link above to submit your assignment.Students, please view the
"Submit a Clickable Rubric...

Question

Click the link above to submit your assignment.Students, please view the 
"Submit a Clickable Rubric Assignment" in the Student Center.Instructors, 
training on how to grade is within the Instructor Center.Assignment 2: 
The Fiscal and Monetary Policy and Economic FluctuationsDue Week 8 and worth 
150 pointsWrite a three to four (3-4) page paper in which you:

Discuss the current economic situation in the U.S. as compared to five (5) 
years ago. Include interest rates, inflation, and unemployment rate in your 
explanation.
Explain the changes in interest rates, inflation, and unemployment rates 
that your research yielded. Explain one reason for each of the changes in 
interest rates, inflation, and unemployment rates that you identified in 
Question 1.
Identify two (2) strategies based on fiscal and monetary policy that would 
encourage people to spend money in order to create economic growth.
Explain how the two (2) strategies that you identified in Question 3 could 
affect the unemployment, inflation, and interest rates.
Use at least three (3) quality resources in this assignment.
Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch 
margins on all sides; citations and references must follow APA or 
school-specific format. Check with your professor for any additional 
instructions.
Include a cover page containing the title of the assignment, the student’s 
name, the professor’s name, the course title, and the date. The cover page and 
the reference page are not included in the required assignment page 
length.
The specific course learning outcomes associated with this assignment 
are:

Analyze imperfectly competitive markets – monopoly, monopolistic 
competition, and oligopoly – to understand their profit-maximizing 
decisions.
Explain the factors and mechanisms of growth.
Explain how governments use monetary and fiscal policy to manage the 
economy.
Use technology and information resources to research issues in principles of 
economics.
Write clearly and concisely about principles of economics using proper 
writing mechanics.
Grading for this assignment will be based on answer quality, 
logic/organization of the paper, and language and writing skills, using the 
following rubric found here.

David · Accepted Answer

TITLE
The current macroeconomic situation in the USA can be analysed by using the most recent data for the quarter ending in June 2013, along with the economic scenario in Euro zone, BRIC nations and the recovery in Japan and Australia. All these factors need to be examined in the backdrop of the severe recession that hit USA in 2008-09.  
As per some economists, this recession was brought about by the busting of the housing sector bubble and the financial sector crisis was the most severe after the Great Depression of 1928. Accordingly, the government went into crisis management and launched massive fiscal and monetary policies to revive the economy.  This caused a record fiscal deficit that was cut down only in 2012. On the monetary front the government carried out quantitative easing policies over time thrice to keep the economy well liquidated and the rate of interest low. This involved pumping the economy with money supply, which is now being blamed for inflationary concerns.  
However the overall result of the policies was that US is on the road to recovery. This recovery can be verified from the latest figures released by the Census Bureau for the quarter ending in June 2013. 
GDp grew at 1.7% as per annualized rate in this quarter. This is better than the expected 1% as per economists’ expectations.  The rate for first quarter of 2013 was also revised to 1.1% from 1.7%. This acceleration between quarters is proof of the recovery. Further, this acceleration is based on an increase in non-residential fixed investment and exports. It is aided by a smaller decline in government spending, and higher imports. 
The recovery is evident if we compare data for last 5 years: 
	
	2007
	2012
	Inflation
	2.85%
	2.07%
	Rate of interest( FED rate) 
	5%
	0.25%
	Unemployment
	4.6%
	8.1%
On the inflation front,

Click the link above to submit your assignment. Students, please view the "Submit a Clickable Rubric Assignment" in the Student Center. Instructors, training on how to grade is within the Instructor...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment