Write a essay about 500-600 words analyze Gross Domestic Product( analysis of th

Question

Write a essay about 500-600 words analyze Gross Domestic Product( analysis of the selected economy's GDP composition and growth over time, as well as an investigation of the basis for income generation and any and all constraints to growth) , The monetary system ( including its development, the role of the central bank, the currency, and the central bank’s influence on the level of prices. Interaction of the monetary system with the government’s fiscal policy, including government indebtedness ) The external sector ( analysis of the balance of trade and the financial flows between domestic and foreign entities. Imports and exports vital to the country’s GDP will be examined) Summary and Conclusions: based on the preceding data, an analysis illustrating the central theme(s) behind the selected economy’s successes and challenges in providing an improving welfare for its citizens.

Explanation / Answer

The US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at Purchasing Power Parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

A monetary policy is the means by which a central bank (also known as the "bank's bank" or the "bank of last resort") influences the demand, supply and, hence, price of money and credit, in order to direct a nation's economic objectives. Following the Federal Reserve Act of 1913, the Federal Reserve (the U.S. central bank) was given the authority to formulate U.S. monetary policy. To do this, the Federal Reserve uses three tools: open market operations, the discount rate and reserve requirements.

In the United States, the central bank – the Federal Reserve (the Fed) – is tasked with maintaining a certain level of stability within the country's financial system. Specific tools are afforded the Fed that allow for changes to broad monetary policies intended to implement the government's planned fiscal policy. These include the management and oversight of the production and distribution of the nation's currency, sharing of information and statistics with the public, and the promotion of economic and employment growth through the implementation of changes to the discount rate.

There are two powerful tools our government and the Federal Reserve use to steer our economy in the right direction: fiscal and monetary policy. When used correctly, they can have similar results in both stimulating our economy and slowing it down when it heats up.

The federal government funds 126 separate programs targeted towards low-income people, 72 of which provide either cash or in-kind benefits to individuals. (The rest fund community-wide programs for low-income neighborhoods, with no direct benefits to individuals.) State and local governments operate more welfare programs. Of course, no individual or family gets benefits from all 72 programs, but many do get aid from a number of them at any point in time.

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