What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? THE PROBLEM: US is the leading economy of the world but is under a recession since 2008 or so. Unemployment is at record high and is the biggest problem areas for policy makers. No jobs means consumer confidence and business sentiment also suffer. The problem stared with the housing bubble in 2008 leading to a near collapse of financial biggies like Lehman Brothers. To weather that situation the US govt has been taking measures to prop up the economy, but without much effect. Currently another problem is the Europe’s growing debt. Many countries like Spain, Greece are reeling under heavy debt, and are asking for help from other European nations. This kind of debt rescue can threaten the growth of not just these nations but of Us and the entire world economy. The fear is that Europe could take US to a new low
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