Macroeconomics Case

As President, my first role is going to be to raise taxes so the rich pays a little more than the middle and lower class. I will also try to lower the rate of unemployment by taking a careful look at the phillips curve and using the information that I gather from that to increase the number of jobs available. I will also look at government spending and see where we can cut cost at and lower interest rates on somethings. We would reverse Okun's Law, which means we would lower the unemployment rate, and rise the GDP percent by reverse his law. The downfall in making the rich pay more would be they would be little upset because they have to pay more in taxes.

In defining and discussing the connection between unemployment and the Gross Domestic Product, between unemployment rates and inflation rates, and between unemployment and the stock and bond markets, it is evident that these elements of the American economy are interrelated to a significant extent. Some are more closely related than others are, for a period of economic recession and a resulting drop in GDP increases unemployment, while the relationship between the financial markets and unemployment rates is not as easy to identify. National Income and GDP Economic welfare of individual contents several dimensions. Political freedoms, the social and cultural environment, freedom from fear of violence and the working environment are all the factors that indicate the movements in standards of living. Estimate of GDP per capita provide the most simplistic and direct indication for measuring

economic welfare of citizens.

GDP per capita means GDP divided by the level of population. National income is often used as the main indicator of the standard of living of an economy. A rise in GDP per head is used as indication of a rise in living standards. GDP measures national income in terms of output .GDP per head simply means the average output per head. The greater amount of output owned by people in average the more people

are able to consume in average.

Living standard goes up in turn. In addition, because the growth rate of population is very slow, we can just look at the movement in GDP when we judge the economic performance refers to GDP per head. Beside the growth rate of GDP, the level of GDP is also an important factor to be considered. With the explaination above as President, I will reverse all of that to get the economy and our GDP back in order. As President, I wanted my country to have a clear understanding of what was taken place in our ecomony I will now turn the floor over to the chairman of the Federal Reserve. As chairman, my job is just as important and the President the only thing is I only deal with making sure our economy is in order.

The first thing is we need to do is fully get a true understanding of what the Federal Reserve is and what there place is in the economy. The Federal Reserve System also known as "the fed" is the central bank of the United States. What is a central bank? A central bank is the public authority that regulates a nation's depository institutions and control the quantitiy of money. The Federal Reserve goals are to keep inflation in check, they are to maintain full employment, moderate the business cycle, and contribute toward achieving long-term growth. In pursuit of these goals, the Federal reserve pays close attention ot the Federal funds rate- the interst rate that banks charge each other on overnight loans of reserves.

The federal government is the single largest influence on the United States economy the influence the economy in two different ways fiscal policy or montary policy. Monetary policy is decision and action by a central bank to manage the supply and growth rate of money in the country, this could be expandionary on contractionary.Fiscal policy is the system of using taxation and government spending to stabilize and grow the economy. To fully understand what the Federal Reserve does we need to also understand there structure. You see there are three key elements of the structure, which is something that I did not know until now.

Now that you have a understand of what my job title is let me tell you how we are going to make this happen the President touch on it a little bit, but did not go in detail with the rest such as wages, long and short run, costs of inflation and more. The federal government is the single largest influence on the United States economy the influence the economy in two different ways fiscal policy or montary policy. Monetary policy is decision and action by a central bank to manage the supply and growth rate of money in the country, this could be expandionary on contractionary.Fiscal policy is the system of using taxation and government spending to stabilize and grow the economy. The best way to do this is to make more jobs able to the public and lower the amount of time you can stay on employment.

Now, before some of you get upset I am not saying we will