¶ … Macroeconomic Situation in the U.S.
Various macroeconomic components can be used in evaluating the performance and health of an economy. Some of the essential parameters include the GDP, the rate of inflation, the unemployment rate, the money policies/tools adopted by the government, and the interest rate among others. The following study focuses on the performance and state of U.S. economy in 2015.
GDP
economy is now on the rise and in good shape after going through the global recession of 2008/9. Some of the major indicators of growth are on the GDP value and the impact on industrial development. The current value of 17419 (in USD Billion) is the highest in American history with an annual growth rate of two percent. A growing economy is normally associated with rising level of inflation. However, this has a negative influence on the welfare of the people and thus the need to have corrective measures in place. The high GDP has also contributed a lot to high levels of per capita and income levels (Chafuen, 2015).
Unemployment Rate
The unemployment level in the country has been increasing since the Obama administration took office. After the recession in 2008, the government has been releasing good statistics showing...
The trend has been the same since the 1970s. The country's labor laws have had to be relaxed to attract foreign workers to come to the country. The challenges of unemployment are related to people's choices and less on economic performance. As a result, some qualified and eligible employees are under the unemployment benefits program (BEA, n.d.).
Inflation
The inflation rate has been increasing in the recent past. Ideally, the improvement in the economy has expanded other variables of growth. The average rate of inflation in the country is read at 5.5% currently. The consequences of this are that the investors are likely to lose the value of their investments. Besides, people are likely to experience a costly life because the prices of goods are going to rise higher than when the inflation was lower. The future of the country lies in the ability of its leadership to put measures in place that will stop inflation (BEA, n.d.).
Expansionary Fiscal Policy Tools
The U.S. government has been undertaking expansionary fiscal policy tools to boost its economic growth. This involves the utilization of all possible avenues of growth so that the economy can grow to such levels…
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