Write a 2 page essay on What is the current macroeconomic situation in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and m

Write a 2 page essay on What is the current macroeconomic situation in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time.

This was a decline from 2% growth rate recorded in the first quarter (Censky, 2012).

Unemployment rate is the ratio of jobless individuals to the labor force. The economy has been experiencing employment growth over the past twenty two months. In July 2012, the employment increased by 163, 000 jobs. The rate of unemployment remained basically unchanged at 8.3% as compared to previous months. Since the commencement of 2012, employment expansion has averaged 151, 000 jobs per month. Inflation rate is the general increase in price levels of services and goods. In June 2012, the rate of inflation in the U.S. was recorded at 1.7%. In June 2012, the Consumer Price Index for all metropolitan consumers was unaffected on a seasonally regulated basis. Over the last one year, all commodities index augmented 1.7% before seasonal alteration (Censky, 2012).

Expansionary fiscal policy is described as an augment in government spending and/or a cut in taxes, which causes the budget surplus to reduce or budget shortfall to increase (Boyes & Melvin, 2012). According to International Monetary Fund (2012), in 2009, the United States administration introduced an expansionary fiscal policy valued at $787 billion. This expansionary fiscal policy is referred as economic stimulus package, which is a combination of tax reductions and increase in government expenditures.

The objectives of the policy were to offer consumer relief, create jobs, increasing consumer expenditure, and increasing production. This fiscal policy played a significant role in forestalling a deeper economic recession. This expansionary fiscal policy has resulted to economic growth, although at a very slow rate (International Monetary Fund, 2012). However, this expansionary fiscal policy is proving to be unsustainable and has increased the public debt. Since the adoption of this policy, national debt has increased over the months. In July 2012, the national debt was