Macroeconomic Situation

Running head : MACROECONOMICS SITUATION[Author][University]From 2005 up to the present , critically evaluating the work of the US rescue , it is clear that despite of the mow pat(p) turns in some of the industries in the market , the frugality managed to experience enclothe There argon a lot of reasons why the stinting growth was attained by US for the past ancient age . After the economic recessions that happened a few eld confirm , the US thriftiness is fighting back in non to experience the utter kind of turmoil . One of the give tongue to contri plainlyors of US economic growth would be the increasing employ up level of the consumer group as the consequence of the try on their disposable income in 2005 (Bernanke , 2007 . Due to this said increment in the consumption of the consumers , GDP of the country improves since consumption is angiotensin-converting enzyme of its study comp iodinnts . away from the improvement of the consumption of the consumers , the booming of the private industries helps the deliverance in terms of improving the domestic market , frankincense making them productive . As these private firms become more(prenominal) profitable , the government receives more tax revenues from them which , in hang , clear up the issue regarding the budget deficit of the government . more in the public eye(predicate) projects are currently made to the public and supererogatory jobs are being created beca aim of this and the booming of the private firms (DeGroat , 2005On the different pass by , one the contri justors of the slowing down of the growth of the US economy would be the sluggish growth in the housing tutelage which has a profound effects in the financial diligence of the country (Hobson , 2005 . With this , real estate firms start to gain losses and began to experience stagnant sales out-of-pocket! to the early and unjustified spending of the consumer group into the housing industry in 2005 .

deflection from the downturns in the housing industry , another economic business 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 picture 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 negative effects of the said inflation rateAs for the Federal Reserves , one of the possi ble ways to solve this problem would be to use their currency reserves to artificially appreciate their currency sacking the domestic oil companies to spend less in the intensity level 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 purchasing power of the consumers through lending money to themAppendixReferencesBernanke , B . S (2007 . Semiannual Monetary Policy Report to the Congress . Retrieved line 14 , 2007 , from...If you want to get a full essay, young buck monde it on our website: OrderCustomPaper.com

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