Question: Read the journal article, "Five Big Steps toward Faster Global Growth". Based on the information presented in the article, discuss the following:
- What are the challenges that the US economy will be faced with given a higher debt limit for future economic growth?
- Describe what would happen to GDP, the unemployment rate and the inflation rate if there is a decline in global growth.
- Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.