Discussion Post: Macroeconomics & Policy Pacing
I can Analyze economic indicators to determine which fiscal and/or monetary tools to apply to the economy.
• The president and congressional leaders are currently looking over economic data to decide the appropriate fiscal policy for the upcoming year. Their goal is a 3% average GPD growth rate and an unemployment rate to be below 4%. Current economic indicators are showing that the economy is experiencing an average GPD growth rate of 2% and an unemployment rate of 5.5%. Based on the current economic indicators, which fiscal policy tools should the government use to reach their economic goals?
• Federal reserve board members are analyzing current economic data to decide monetary policy. Their target goal for the economy is for the average god growth not to exceed 4% and for inflation not to exceed 2%. Economic indicators are showing that the current economy is experiencing an average GPD growth for 4.5% and an inflation rate of 4%. Based on current economic indicators, which monetary policy tools should the federal reserve use to reach their goal?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.