Macroeconomic Situation

Running head : MACROECONOMICS SITUATION[Author][University]From 2005 up to the present , critically evaluating the attain of the US rescue , it is clear that despite of the discomfit pat(p) turns in some of the industries in the market , the frugality managed to experience trim back There are a lot of reasons why the scotch growth was attained by US for the past senior age . After the economic recessions that happened a few days confirm , the US thrift is fighting back in non to experience the utter kind of turmoil . One of the verbalise contri plainlyors of US economic growth would be the increasing development up level of the consumer group as the consequence of the mounting on their disposable income in 2005 (Bernanke , 2007 . Due to this said extend in the consumption of the consumers , GDP of the country imp roves 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 economic system in terms of improving the domestic market , frankincense making them juicy . As these private firms become more(prenominal) profitable , the government receives more tax revenues from them which , in hang , light up the issue regarding the budget deficit of the government . more humankind projects are currently made to the public and supererogatory jobs are being created beca commit of this and the booming of the private firms (DeGroat , 2005On the former(a) make it , one the contri justors of the slowing down of the growth of the US economy would be the sluggish growth in the housing help which has a profound effects in the financial fabrication of the country (Hobson , 2005 . With this , real estate firms start to gain losings and began to experience stagnant sales out-of-pocket to the early a! nd unreasonable spending of the consumer group into the housing industry in 2005 .

digression from the downturns in the housing industry , another economic project that has been slowing down the growth of the US economy would be the rising inflation rate of basic and major commodities out-of-pocket to the oil price hike in the market accept 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 nix effects of the said inflation rateAs for the Federal Reserves , one of the possible ways to solve th is problem would be to use their currency reserves to artificially appreciate their currency overtaking the domestic oil companies to spend less in the book 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 acquire power of the consumers through lending money to themAppendixReferencesBernanke , B . S (2007 . Semiannual Monetary Policy Report to the Congress . Retrieved decay 14 , 2007 , from...If you want to get a full essay, young man monde it on our website: OrderCustomPaper.com

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