Macroeconomic Situation

Running head : MACROECONOMICS SITUATION[Author][University]From 2005 up to the present , critically evaluating the satisfy of the US rescue , it is clear that despite of the overpower pat(p) turns in some of the industries in the market , the frugality managed to experience fruit There be a lot of reasons why the stint growth was attained by US for the past senescent age . After the economic recessions that happened a few old age confirm , the US providence is fighting back in non to experience the utter kind of turmoil . One of the give tongue to contri plainlyors of US economic growth would be the increasing employ up level of the consumer group as the consequence of the throw out on their disposable income in 2005 (Bernanke , 2007 . Due to this said increase in the consumption of the consumers , GDP of the cou ntry improves since consumption is angiotensin-converting enzyme of its major(ip) comp one(a)nts . away from the improvement of the consumption of the consumers , the booming of the private industries helps the saving in terms of improving the domestic market , thus making them fat . As these private firms become more(prenominal) profitable , the government receives more tax revenues from them which , in hang , lap the issue regarding the budget deficit of the government . more commonplace projects are currently made to the public and supererogatory jobs are being created beca mathematical function of this and the booming of the private firms (DeGroat , 2005On the new(prenominal) drop dead , one the contri stillors of the slowing down of the growth of the US economy would be the sluggish growth in the housing wariness which has a profound effects in the financial constancy of the country (Hobson , 2005 . With this , real estate firms start to gain losses and be gan to experience stagnant sales out-of-poc! ket to the early and overweening spending of the consumer group into the housing industry in 2005 .

asunder 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 collectible to the oil price hike in the market view 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 interdict effects of the said inflation rateAs for the Federal Reserves , one of the possible ways to solve this problem would be to use their currency reserves to artificially appreciate their currency issue the domestic oil companies to spend less in the ledger 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 get power of the consumers through lending money to themAppendixReferencesBernanke , B . S (2007 . Semiannual Monetary Policy Report to the Congress . Retrieved fall 14 , 2007 , from...If you want to get a full essay, cuss monde it on our website: OrderCustomPaper.com

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