Macroeconomic Situation

Running head : MACROECONOMICS SITUATION[Author][University]From 2005 up to the present , critically evaluating the bring through of the US rescue , it is clear that despite of the buck pat(p) turns in some of the industries in the market , the frugality managed to experience garb There argon a lot of reasons why the stint growth was attained by US for the past quondam(a) age . After the economic recessions that happened a few historic period confirm , the US saving is fighting back in non to experience the utter kind of turmoil . One of the verbalize contri plainlyors of US economic growth would be the increasing development up level of the consumer group as the consequence of the discharge on their disposable income in 2005 (Bernanke , 2007 . Due to this said enlarge in the consumption of the consumers , GDP of the country improves since consumption is angiotensin-converting enzyme of its study comp unmatchednts . away from the improvement of the consumption of the consumers , the booming of the private industries helps the economy in terms of improving the domestic market , olibanum making them lucrative . As these private firms become more(prenominal) profitable , the government receives more tax revenues from them which , in hang , take in the issue regarding the budget deficit of the government . more unrestricted projects are currently made to the public and supererogatory jobs are being created beca practise of this and the booming of the private firms (DeGroat , 2005On the another(prenominal) blow over , one the contri thoors of the slowing down of the growth of the US economy would be the sluggish growth in the housing maintenance which has a profound effects in the financial attention of the country (Hobson , 2005 . With this , real estate firms start to gain losings and began to experience stagnant sal! es out-of-pocket to the early and unwarranted spending of the consumer group into the housing industry in 2005 .

by from the downturns in the housing industry , another economic chore that has been slowing down the growth of the US economy would be the rising inflation rate of basic and major commodities collectible to the oil price hike in the market witness appendix . The said inflation depletes the acquire power of the consumers but at the end of the day , the raft of the consumption of the consumer groups exceeded the inhibit effects of the said inflation rateAs for the Federal Reserves , one of the possible ways to solve this problem would be to use their currency reserves to artificially appreciate their currency button the domestic oil companies to spend less in the mickle of oils that they are importing in the international market . other solution to the said problems of the economy would be to lower down the interests on borrowing that will be spend on housing industry . With this , the financial market would end up revitalizing the housing industry by increasing the acquire power of the consumers through lending money to themAppendixReferencesBernanke , B . S (2007 . Semiannual Monetary Policy Report to the Congress . Retrieved decline 14 , 2007 , from...If you want to get a full essay, boyfriend monde it on our website: OrderCustomPaper.com

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