Macroeconomic Situation

Running head : MACROECONOMIC SITUATION[Author][University]From 2006 up to the present , the US scrimping experience fair increment delinquent to the boosts of the industries in the merchandise as well as the growing in the consumption of the private and consumer grouping which made the gross domestic product of the terra firma to improve . The booming of the private industries enables the government to receive more(prenominal) tax income collection which in turn gives the latter bountiful allowance account to solve their problem regarding budget deficits not to diagnose the increase in the government sp finaleing as an opinion of the return in their tax collection . Moreover , due to the increase in the income of the labourers towards the obliterate of 2005 , the level of consumption of the consumer group improve during the inaugural quarter of 2006 which made the GDP of the hoidenish to progress (Baker , 2006 . Aside from the verbalise two main contributors of the scotch growth of US economy , another(prenominal) would be the improvement in the international mart which positively modify the betray balance of the economy . The US was enabled to export more than the unc tabuh volume which also contributed in the improvement of GDP of the domain . The improvement in the GDP of the economy is very around(prenominal) important in attracting more investors to limit their capitals into the US economyAlthough in general the US economy has been improve for the past old age , there are quiet industries and economic factors that negatively affected their economic growth and one(a) of which is the sluggish lodging fabrication . It has been found out that the outgo of the consumers to housing declined by the scram of 2006 (FRBSF .com , 2007 . Beca expenditure of this , real nation companie s incur losses which , to some level , slow! ed garbage down the growth of the economy .

Aside from the sluggish housing effort , another factor that negatively affected the economic growth of US would be the increasing fossil oil prices in the market see appendix . Due to the increase of the oil prices in the market , prices of some basic commodities increased which partly slowed down the consumption of the consumers in the marketDespite of the inflation and down turns of some industries in the market , still , the US economy managed to let out ways to offset those negative effects and at the end of the day experience economic growth As for the federal confine , in to solve this issue would be to using up their currency reserves so as to artificially assess the dollar over other foreign currencies in to passage of arms back the oil prices in the market unchanged . The federal official Reserve could also lower down their interest pass judgment in sorbing so as to attract the public to espouse money to them and used it to purchase housing units . With this , the housing application has the possibility to improveAppendixReferencesBaker , D (2006 . Recession Looms for the US Economy in 2007 . Retrieved December 14 , 2007 , from HYPERLINK http /www .cepr .net /documents /publications /forecast_2006_11 .pdf http /www...If you wishing to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper