In Project 1 you addressed the problem of selecting specific metrics or measurin

Question

In Project 1 you addressed the problem of selecting specific metrics or measuring sticks that one might want to review and analyze in order to assess the performance of the U.S. macroeconomy. Your assignment now is to take the next step.

Project 2: Grade the performance of the U.S. economy today. That’s right, I want you to assign the economy a letter grade (A to F) in terms of its overall performance. Explain and justify your assessment. Be thorough but concise, and support your assessment with data and analysis—not religion or politics.

Please note that you must assign an overall performance grade for the economy. Whether you assign grades to any or all specific performance areas or aspects that you might consider is optional, but there must be an overall grade that is clearly identified as such. [Side note: You are not restricted to using metrics you selected and/or discussed in Project 1. That was a learning exercise. This is an opportunity to demonstrate that you learned.]

Special instructions: Your submission may not exceed 1800 words (not counting sources/references and charts/tables).

Explanation / Answer

The u.s economy has stagnated over the years with current GDP 1.4 % in its fourth quarter and personal income of 0.4% which is why the consumer spending is continuing to be stagnant.But it is optimistic to think that economy will grow soon and is on its recovery path but it is limited this is because majorly empployment and output is not coming back on track as effectively as it should be .The country is expected to not face recession in the coming two years but since the effective interes rates are nearly zero which makes fed policies more volatile.The confidence will be built only if fed is able to apply effective policies and people have enough income to make demand in the economy .Therefore the economy is somewhere in the grades of c because various macro economic variables are not being touched upon like employment.The smooth functioning cannot be guaranteed only at the cost of government policies implications , it is necessary to focus on such variables too. But the fed rates are already low and cannot be reduced further , safety nets programmes have effective people in different ways therefore there effect has not been universally aplicable for all.

Hence , the funds need to be more secure to reduce risk of recession hitting the economy with focus on implemenattion of effective policies for sound employment opportunities and output growth to prevent any future downfall.

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