Questions On Computer Skills Developed Over The Semester

Please complete the following questions. It is important that you use full sentences and present the questions and answers when you submit your work. Submit the work as a file attachment. This means you complete all work in a word processing document (e.g., Microsoft Word) and attach the file using the dropbox tool. Use the Unit 1: Text Questions dropbox basket.

The Federal Reserve is currently implementing expansionary policy. When the Federal Reserve implements expansionary policy, their goal is to increase money supply, and in turn helping to grow the economy. During expansionary policy taxes are cut, and there is typically an increase in government spending. Expansionary policy is also implemented to decrease unemployment and increase inflation. I think that using expansionary policy could be a good thing for the economy of the United States. I think with the goals of decreasing unemployment, increasing money supply, increase government spending, and grow the economy this could be a good thing for the economy of the United States. I think that decreasing the unemployment rate is particularly

If the Federal Reserve saw or presumed that the monetary policies on economic stability were directly related to employment growth, then they were right to just serve one mandate of price stability. It was correct to argue that when the economic policies of a nation are favorable, the economic status of the country will grow. It is during economic growth when there are investments in the economy that attracts employments. When the economic growth is favorable, the lending of a nation will be better and thus self-employment will be evident. Therefore, the two mandates could be effectively joined into one another (Lalonde, & Parent, 2006).

Due to the diversity of Joe and Bob’s professional backgrounds, their positions on how to restore the economy will be painted by their own personal experiences. Bob, being employed by the Federal Reserve Bank, would recommend that the Federal Open Market Committee (FOMC) adjust the monetary policy. The FOMC has the power to adjust the amount of dollars in the economy and set the interest rates for banks to borrow from. (Mankiw, 2012, p.626) The Fed could seek to reduce the discount rate which would encourage banks to borrow from the Fed—thus increasing the money supply and the quantity of reserves. Additionally, with lower interest rates, banks would be more willing to lend to borrowers, which also stimulates the economy (p.633).

The Fed Reserve Bank (the Fed) uses monetary policy response work with open market operations to effect interest rates, however, during the financial crisis, the Fed used the unconventional monetary policy of quantitative easing to lower interest rates nearly to zero, by increasing the money supply. The Fed response was a way to stimulate the economy, it was not an attempt to stabilize it. This drawing down of interest rates was with the goal to stimulate the economy. This worked through by increasing the money supply allows

First I am going to talk about the Fed’s “dual mandate”. What is the dual mandate? Congress amended The Federal Reserve Act, stating the monetary policy objectives of the Federal Reserve as, ”The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” (Chicago Fed 1). It if often called the "dual mandate" and guides the Fed's decision-making in conducting monetary policy. Now I am going to talk about the tools that the Fed use’s to achieve its goals. Some goals consist of a low unemployment rate, a stable price level, and economic growth. To help complete these goals the Fed uses certain tools to help fulfill them. An example would be a monetary policy that helps to close a recessionary gap and thus promotes full employment may accelerate inflation. A monetary policy that seeks to reduce inflation may increase unemployment and weaken economic growth. The Fed undertakes stimulative measures in response to a recessionary gap or even in response to the possibility of a growth shutdown to not allow the high inflation rates of the 1970s to occur again. Now I am going to explain what happens when the Fed pursues an expansionary or contractionary policy. “Expansionary policy, such as a purchase of government securities by the Fed, tends to push bond prices up and interest rates down, increasing investment and aggregate demand. Contractionary policy, such as a sale of government securities by the Fed, pushes bond prices down, interest rates up, investment down, and aggregate demand shifts to the left,” (Saylor

As I begin to write what will help create jobs for the unemployed I must write about the monetary policy. The monetary policy is an very unique policy that impacts inflation and can create a worldwide demand for goods and services, which would create jobs. As a result, employees who produce goods and services primarily through its influence on the financial demands face troublesome include households and firms. The Federal Reserve also can affect financial conditions by

The creation of Macroeconomics had two distinctive purposes (ACDCLeadership, 2014). These two purposes provide a measurement for the economy and act as a resolution for problematic situations (ACDCLeadership, 2014). There are three aspects which account for the measurement of the economy (ACDCLeadership, 2014). These three aspects are a recession, an inflationary gap, and full employment (ACDCLeadership, 2014). When a recession occurs there are three courses of action which can be applied to the situation (ACDCLeadership, 2014). The first course of action is no policy, which is to take no course of action and wait the period out (ACDCLeadership, 2014). When there is a period of high unemployment, no policy, causes wages and cost to go down while aggregated supply will increase stabilizing the economy back at full employment (ACDCLeadership, 2014). The second policy that could be implemented is fiscal policy which focuses on government spending and taxation (ACDCLeadership, 2014). In the occurrence of a recession, to stimulate the economy government spending is increased, while taxes are cut (ACDCLeadership, 2014). Lowering taxes increases the consumer response causing aggregated demand to increase (ACDCLeadership, 2014). The third course of action is monetary policy which is the control of money supplied to cause a shift in aggregated demand (ACDCLeadership, 2014). The money supplied is increased causing a decrease in the amount of interest rates, which will increase the

The Changes in demand will influence the both the inflation and unemployment rates that the economy goes through in the short-run. In some cases it has been seen that there was both a fall in inflation and fall in unemployment; for example, during the 1990s in the United Kingdom, unemployment fell, but inflation stayed low. This therefore proved that it is probable to reduce unemployment without causing inflation. Further research Pettinger (2011) showed that “you could argue that there is still a potential trade off except the Phillips curve has shifted to the left, because there is now a better trade off. It also depends on the role of Monetary policy. If monetary policy is done well, you can avoid some of the boom and bust economic cycles we experienced before, and enable sustainable low inflationary growth which helps reduce unemployment.”

We are going to aim our focus on two basic goals of monetary policy: to promote maximum employment as well as stable prices. What does this mean exactly? First we need to understand that in the long run, the goods and services the economy produces, known as GDP, as well as the jobs created, are not as influenced by monetary policy in comparison to the short term. In the short term however, the Fed can play a major role. Let’s say through lower levels of demand, a recession occurs. The Federal Reserve

Unemployment is a serious issue for an economy, unemployment happens basically when an individual is looking for an employment and can’t get a job. He or she is considered unemployed.

Monetary policy when a central bank has an influence on a country’s money supply. Monetary policy is a large factor when it comes to a country’s economy it can either affect them in a positive way or in a negative way. One case where a successful implementation of monetary policy in the United States occurred in 1982: the anti-inflationary recession caused by the Federal Reserve under the guidance of Paul Volcker.You will notice the steps that mR Volcker took to help lower these rates. How he helped change America 's economy.You will see how monetary policy has its good and bad outcomes. also how it is used for the greater good for the whole economy.

However, an evaluation of the response by the Federal Reserve of the United States of America and other governments demonstrates that it can indeed help to revive the economy. Furthermore, the other alternative to monetary policy intervention is fiscal policy that has many political and other issues to consider. As a result, the former is the most effective and easiest response to a weak economy.

Unemployment has been a major problem that many of the nations find themselves in. United States is not an exception, citizens have complained to the government for lack of job and have demanded for a quick and strategic action to be taken to solve the problem, however unemployment is an issue that cannot be completely solved because of the many aspects that has to be considered by different stakeholders.

The unemployed can be defined as those people able, available and willing to work but cannot find a job despite an active search for work. Unemployment means that scarce human resources are not being used to produce goods and services to meet peoples changing needs and wants. Intense amounts of unemployment can have traumatizing effects on a population. Important key terms to remember when talking about unemployment are: