What side effects might this policy have


State of the economy

Based on current news, please describe the state of the economy, government fiscal policy and Fedâ??s monetary policy by answering the following questions. Please provide citation where possible

1.What stage of the business cycle is the economy going through? Give several major econ indicators, for example, inflation, unemployment, econ growth, poverty rate (quote your sources of info).

2.What are todayâ??s major macro problems â?" inflation or unemployment? Why do you think so?

3. What kind of fiscal policy is the government conducting and why? What side effects might this policy have?

4.What kind of monetary policy is the Fed conducting to address the problems above? Any side effects here?

5.In your opinion, what economic issue should be on the policy-makersâ?? agenda next. Offer your brief solution.

 

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