Question

What drives the expansion of the United States??

Answer 1

The expansion of the United States is based heavily on the US economy and how it flourishes. This in turn is dependent on the control of monetary and fiscal policy and also the US trade with other nations. In case the US Fed uses a loose monetary policy then this will stimulate aggregate demand and through the growth in income will increase the expansion of the United States. The cut back in taxes will also increase disposable income and so as spending propensity changes this will cause an increase in income flowing around the economy. The GDP which is the best measure of size of the nation will only grow if consumption and investment within the nation increases. Thus these variables must rise before the nation as a whole expands.