Business Finance
Money and the Prices in the Long Run?

Question Description

Assignment Steps

Resources: National Bureau of Economic Research

Develop a 2,100-word economic outlook forecast that includes the following:

  • Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years.
  • Discuss how government policies can influence economic growth.
  • Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.
  • Describe how trade deficits or surpluses can influence the growth of productivity and GDP.
  • Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.
  • Recommend, based on your above findings, whether the strategic plan can be achieved and provide support.

Use a minimum of three peer-reviewed sources from the University Library.

Final Answer

Attached.

Running head: ECONOMICS

1

Economics
Institution Affiliation
Date

ECONOMICS

2

Introduction
Many countries are dependent on their economic trends to predict their economic future.
This ensures that the government and the requisite agencies are able to plan for their economy.
Economic forecasts are made from time to time to ensure that the economy is trending in the
right direction. This allows for the creation of a roadmap that clearly shows how the economy
can be run successfully (Borio, James & Shin, 2016). Putting in place the requisite measures to
control the economy is also part of the reason why economic planning is done in various
countries. The US economy has been an epitome of growth for a long time. This does not,
however, mean that the US economy does not experience fluctuations and hardships. Economic
planning and speculation are one of the reasons why the US economy has flourished for a long
time.
History of changes in GDP
The US has a long economic history. This history can be traced back to the end of the
World War II. This period marked a strenuous time for the US economy. The economy went to
the drain and all the factors that determine the success of an economy no longer worked for the
good of the economy. This has been explained using the numerous financial allocations that the
US government used to fund the war. There was a crisis in the financial sector. Interest rates for
lending loans shot up. A lot of people who had contributed to the growth of the economy were
killed or displaced and this ultimately led to the downfall of the strong economy. The great
recession in 2009 has also contributed greatly to the downfall of the US economy. This recession
made history with many people losing jobs. Now the US economy has however risen with time
and is actually one of the most successful economies in the world (Mester, 2016).

ECONOMICS

3

America's population has been rising on over the years. Statistics indicate that the
population has risen by about 9 million in the last five years. This has had several implications
for the country's economy. One of the tangible implications of the rise in population has been the
significant rise in the country’s GDP. The GDP has risen from about 15,000 dollars to 17,000
dollars in the last five years. This can be attributed to the vigorous economic planning strategies
that the country has taken up to ensure that the country remains economically stable and that a
sustainable economy is developed. The Annual GPD growth has also been remarkable. This is
because the country experiences more than 0.5 growths every year.
This is not to say that the country’s economy is always on the rise. There are several
shortcomings and challenges that bring America’s economy down. The fact that the country’s
...

agneta (47468)
UT Austin

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