Question

Evaluate the health of the current U.S. economy by its GDP, business cycle, and economic growth.

Answer 1

US economy has almost recovered from depth of economic recession which hit economy way back in 2008. Expansionary fiscal and monetary policies contributed significantly to moderate ill fall out of recession.

Now US economy is growing at above 2 % and inflation is likely to move above the 2 %. Unemployment rate is 3.9 % which is almost equal to natural rate of unemployment. Thus, we can conclude from these figures that US economy is expanding.

Although Almost everything is going fine in US, there are few areas where US economy is not performing well. Debt is rising due to increase in free lunch economy. Trade deficit is also high. US policy makers need to address these issues on urgent basis to sustain rapid economic growth over the long run,