Econ312 Week 6 Paper - 611 Words

What is the current macroeconomic situation in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? From what is supposedly being shown in papers and on the news the U.S. economy is currently concerned about unemployment, caused by the recession. This â€Å"current macroeconomic situation† is pardoning my language freaking a lot of individuals out, because some have no idea of how it is going to get better. The news/media is not painting us such a pretty picture of it, by calling it â€Å"this decade’s depression†. The unemployment rate is at 8.2% as of July 2012, whereas the average in 1948 was at 5.6%.†¦show more content†¦The Federal Open Market Committee (FOMC) is a 12 member committee that makes decision for the US Federal Reserve; they are trying to stimulate the economy through printing money and purchasing treasuries. Loans are another tricky business, but tax breaks for big businesses and the wealthy that give incentives to create jobs and stimulate small business growth I think could help get the U.S. in proper motion again. How ever, I heard this would come at the cost of upsetting the middle class, which I can’t very well understand at this time, mainly because I’m at the end of that totem pole currently. But I always thought that the middle class was partially behind helping small businesses so maybe someone can explain that to me. This expresses terms of the U.S. current economic status and possible ways they’re trying to get back on track. References 1. United states gdp growth rate. (2012, July 27). Retrieved from http://www.tradingeconomics.com/united-states/gdp-growth 2. United states gdp growth rate. (2012, August 15). Retrieved from http://www.tradingeconomics.com/united-states/inflation-cpi 3. Levin, A. T., Johannsen, B. K., Beechey, M. J. (2011). Are long-run inflation expectations anchored more firmly in the euro area than in the united states?. American Economic Journal: Macroeconomics, 3(2), 104 - 129. doi: