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Econ.edited

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Subject
Economics
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Palm Beach State College
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Homework
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Macroeconomics policies
According to the federal reserve bank of St. Louis, the gross domestic product for the
year 2018 was $5,311,394 billion. The unemployment rate was 3.9% at the end of the year.
The interest rate was reduced to 2.40% at the end of 2018.
The macroeconomy fared very well in the year 2019, showing significant
improvements form the previous years. The gross domestic product increased to $5,571,583
billion at the end of 2019. Consequently, the unemployment rate declined exponentially to
3.5% at the end of the year 2019. Macroeconomic policies were tightened in the year 2019
since there was an increase in disposable income in the economy. The interest rates declined
during the year 2019 to a low of 1.55% on 31
ST
December 2019.
The economic outcome of the year 2020 is uncertain due to the likelihood of a financial
crisis later in the year. It is caused by a global pandemic of the coronavirus spreading rapidly.
As a result, the economy will succumb to strict measures such as lockdown and minimized
human interactions. The unemployment rate is increasing as well as the interest rates. It implies
that the GDP will decline at the end of the year 2020.
Powell should not have increased the interest rates due to the decline in demand for
credit. Rising interest rates implies that the need for money is high. On the other hand, the
supply of credit will result in a decline in interest rates. Predictably, the interest rates will rise
due to the recorded trend and forecasted financial crisis. Individuals will seek to acquire money
through credit due to a reduction in income levels.

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Username 1 Name Institution Date Macroeconomics policies According to the federal reserve bank of St. Louis, the gross domestic product for the year 2018 was $5,311,394 billion. The unemployment rate was 3.9% at the end of the year. The interest rate was reduced to 2.40% at the end of 2018. The macroeconomy fared very well in the year 2019, showing significant improvements form the previous years. The gross domestic product increased to $5,571,583 billion at the end of 2019. Consequently, the unemployment rate declined exponentially to 3.5% at the end of the year 2019. Macroeconomic policies ...
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