Topic > US Federal Government and Economic Issues - 1227

This document relates to what I learned in my macroeconomics class. For this final essay; I will write about the operations of the United States federal government and how government leaders handle macroeconomic issues in our economy. We'll discuss a couple of current economic issues and what the federal government is doing to find solutions. I will also address issues related to U.S. unemployment, international trade, fiscal and monetary policies, and alternative energy methods, along with the Federal Reserve's role in safely curbing recession and avoiding inflation. The United States federal government is actively involved in ensuring national security through counterterrorism techniques. They carry out strategic planning to ensure macroeconomic financial stability and economic development. The government provides financial, political, and social stability to our economy and controls macroeconomic aggregate demand and aggregate supply. Congress and the President control fiscal policy. The Federal Reserve has complete control of monetary policy. “Fiscal policy is changes made by Congress and/or the President to taxes and government spending that impact national gross domestic product (GDP) data.” (O'Sullivan, p.212) GDP (trade) data represents the total market value of domestic goods and services produced only within a country's geographic area on an annual basis. According to eHow contributor, Shane Hall, 2011, reports that “the burden of various types of taxes distorts funds in the market because the charges affect the cost and income of goods and services. On the economic supply side, a rising tax rate will affect economic activity and hinder the growth of the economy. (Hall, 2011) In connection...... half of the document ......rd of the Governors of the Federal Reserve System (FBR), press release and last update March 15, 2011, press release: FOMC statement http: / /www.federalreserve.gov/newsevents/press/monetary/20110315a.htmEnsinger, D., June 20, 2011 - 8:40 am, "NAFTA Repeal Bill Stuck in House," Copyright 2007 Economy in Crisis http: / /www.economyincrisis.org/content/bill-repeal-nafta-stalled-houseHeffner, T., June 20, 2011 – 10:05 am, “Unethical Predatory Practices,” Copyright 2007 Economy in Crisis http://www.economyincrisis .org/content/unethical-predatory-practicesMiller, R, L., (2010), Economics Today, (15th edition), Boston: Pearson Addison-WesleyPetruno, T., 18 June 2011, US Economy: Federal Reserve: “ More stimulus from the Fed? - Don't count on it!” Copyright 2011, The Los Angeles Times http://www.latimes.com/business/la-fi-petruno-20110618,0,5811817.column