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Unemployment for the last 6 months has been around the 4.0% mark. Although, energy and food prices have been fluctuating up and down, the overall inflation rate has remained constant at a 20 year low of 2.0%. Car sales and durable good sales are rising at a moderate but steady rate. Retail sales are increasing briskly at a 4% annual rate. GDP is rising at about 4% per quarter, according to the latest data. Housing sales are rising at a moderate rate. Housing prices are about the same as they were a year ago. Inventories are at desired the level. The natural rate of unemployment is considered to be 4.0%. Answer the following questions below:

1. The problem in the economy, if any (Describe from the information given in the paragraph, why you chose that particular problem).

2. The monetary and fiscal policy to be used;

3. The tools of the policy and how they work to correct the problem;

4. Any undesirable consequences that may arise when the Fed and/or the federal government implement the policy.

5. In your discussion please discuss the branch of the government that will implement each of these policies (Federal government or Federal Reserve).
in Other by (170 points)  

1 Answer

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Simple answer. Obama and his lack of interest in creating jobs for the blue collar worker. Good luck with your homework. 

by (17.1k points)  



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