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2 pages/β‰ˆ550 words
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APA
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Mathematics & Economics
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Essay
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English (U.S.)
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U.S. Economy Assignment Mathematics & Economics Essay

Essay Instructions:

The US economy is in the recovery phase of the business cycle. It is one of the longest recoveries on record. how east did the economy grow last year? How fast did in grow in each of the first three quarters of 2018? What is the “consensus” forecast for real GDP growth next year? What are JP Morgan and Goldman Sachs projecting for growth in 2019? Where does Goldman put the probability for a recession in the next 1-3 years?
At some point, the expansion will end, and the economy will go into recession. When it does, policy makers will try to reverse it by pulling one or both “policy levers.” Write an essay, explaining what each of the levers are and how pulling each one is supposed to help strengthen the economy? Can a recovery happen while spending is falling, in the aggregate? Explain carefully.
**Note: I am not interested in your personal opinion(s) about which polices you would prefer to see implemented. I am only looking for you to demonstrate that you understand the mechanics of fiscal and monetary policy and what it takes to return the growth rate to a positive number.

Essay Sample Content Preview:

U.S. ECONOMY
Name
Course
Introduction
Policy levers in economics can be described as levers that can be pulled with an aim of changing the behaviors and attitudes of people so as to expand or grow the economy. There are two policy levers which are monetary and fiscal policies. They are applied by the government so as to control the demand aggregate in an economy so as to make it stable. The application of the two levers differ with the economic situations and the expected outcomes. The economy of U.S. has risen considerably over the past few years. In the past year, 2017, the economy grew with a 2.3% which was considered to be considerably higher than that of 2016 which was 1.5%. In the first quarter of 2018, it grew with 2.2% while in the second quarter it grew with a whopping 4.1% which can be said to be the highest economic growth the country has experienced since 2014. The third quarter estimate economic growth is 3.5%. The is a forecast that the economic growth rate may drop in 2019 where the economic growth may range to around 1.8% (Bettig, 2018).
JP Morgan and Goldman Sachs differ in their projections for the economic growth 2019. JP Morgan projects a possibility of a drop where the economic growth by the end of 2019 maybe 1.03%. Goldman Sachs, on the other hand, projects that with the current trends in unemployment growths and economic state, the economic growth may be -2.13%. Goldman places his argument for a reduction on the economic growth on the projected unemployment rate which is expected to drop by 3.3%. Goldman also placed the argument on the increase in Fed where it argued that the Fed was on the increase when the economic growth fell. After the projected economic growth rate drop in 2019, there is an expected recession in 2020. The recession is expected to be brought about by the policy levers which policymakers will pull in the bid to stabilize the economy and promote economic growth. Policy l...
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