Current Macroeconomic Situation in the U.S
The current macroeconomics condition in the States is more varied than before. The economy of the United States has been reported to be in expansion since the year 2009 after the recession. The economic growth, in general, is slow, and the unemployment rate remains relatively higher. The above situation has left the US to worry about the unemployment rate rather than inflation. In the year 2012, US GDP growth was reported to be 2.8 % and in the following year it slowed down to 1.9%. In 2014, the growth was estimated to be around 2.8 % and in 2015, experts believe the GDP growth will be more than three percent. Some of the suggested ways the government of the United States can solve the problem is to come up with loose monetary and fiscal policies (Chafuen, 2015).
According to economic experts, a country undergoing expansion should need to worry about inflation and not the unemployment rate. This is because of aggregate demand is increasing, and this will likely cause the prices of goods and services to increase. During situations like this, the government should move to implement tight monetary and fiscal policies. The interest rates should be increased, and securities sold in an open market. Also, taxes should be raised, or the spending should be reduced (Chafuen, 2015).
Although the current economic expansion of the United States is not at its best, the government should not engage in the above types of policies. The United State…
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