The US Economy in 2009 and Today

Related BrainMass Solutions

• Current Global Business Situation & Effect on U.S. Economy and Business

  The crisis and money continuously spent out on bail outs is leading towards a sharp reduction in bank lending, which is actually directing towards a severe recession in US economy (US Economy, 2013).

• Contractionary and expansionary fiscal policy

  Appropriate policy in the current times Right now US economy is facing recession as U.S. gross domestic product (GDP) shrank 1% in the second quarter, following the first quarter's 6.4% drop.

• The central bank of the People's Republic of China (PRC)

  Its central bank is called the People's Bank of China (PBOC) and it manages the Chinese economy through open market operations, in the same way that the Federal Reserve manages the economy of the United States.

• Close borders and immigrant guest worker program

  The Chinese hold more than $750 billion of US Treasury Securities. (Source: http://www.treas.gov/tic/mfh.txt) as of April 2009.

• Leading Economies of the World: A study

  Both the leading consumers and manufacturers today, The US, followed by China top the world's most powerful and influential economies.

• Catastrophies caused by hurricane Katrina

  This in turn affects the taxes and all other aspects of the economy.

• Private consumption expenditure

  What is the current business cycle situation in the U.S. today (Fall 2009)? Discuss each sector of aggregate demand (C+I+G+X), interest rates, and inflation. 2.

• Leading Countries of the World

  The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country (i.e. goods and services used by the military) (cia.gov, 2009).

• The US Economy and the Role of the Fed: A Keynesian Perspective

  At the same time, it needs to think outside of the box and figure out why consumption (proxy for the state of the economy) remains low in the US, and how to boost it.