Macro Written Assignment

Running head : MACROECONOMICS WRITTEN ASSIGNMENTMacro sparings Written Assignment[Author][University]Macroeconomics Written AssignmentMany be saying that the U .S . economy is reconcilely on the sign stage of experiencing economic recession due to the unbalance that is occurrence on major industries in the merchandise (Iht .com , 2007 . With the pressing see to it of the U .S . economy , it is the role and responsibility of the national governance to provide the necessary solution to address the impeding economic recession in the United States . A balance in providing policies , monetary and fiscal policy must be secured by the federal government in to have a sustainable solution for the present instability of the U .S . economyThe instability of the present economy is being attributed to the decline of household s expendable income in the market during the first quarter of 2006 . Many economists said that the decline in quality of household s disposable income was caused by the lowlyering of wages of working(a) partition by the end of 2005 . The GDP growth ordain of the United States was down by 0 .6 percent , from 5 .2 percent to 4 .6 percent , after the economic instability starts affecting the domestic market . Due to this hold in disposable income of households or consumers in the market the domestic consumption declined dramatically causing tremendous amount of loses on various industries in the market . Like for instance , the housing industry has been scathe to pecuniary difficulties as the demand of consumers for housing market puddle their financial stability hard . In this regard , it would be better to focus the policies of the federal government on addressing the limited disposable income of the households and the low wage dictate of the working class in the marketEconomic Policies for U .S .

Economy RecoveryOne of the possible monetary policies that the federal government could implement would be the lowering of interest judge of various financial securities such as mortgages for industries in the market to provide financial support . This lowering of interest run would give these industries enough room to stabilize their financial fix and would serve as the stepping stone of their fast recovery . The low demand of the consumers in the market creates enough pressure for the gross revenue and profitability of various industries to perform badly leading for financial problems of companies in the domestic market . With the lowering of the interest array , companies can now borrow much money that they submit in to restore their accounts and cover the losses that they give start by continuing their operation . The only side make of this policy would be a possible high puffiness rate a few years after increase the interest rate in the market since there will be an increase in the money supply in the economyAs for the fiscal policy of the government , it would be better if they would get in a law that would increase the minimum wage rate of every worker in the United States in to emend the disposable income of...If you want to get a full essay, vow it on our website: Ordercustompaper.com

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