US Macroeconomics

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US macroeconomics The American economy is currently the largest economy of the globe the second, when the European Union is considered, yet this is a union of several countries, all generating gross domestic products. The US economy is an open economy, engaging in trade operations with countries across the entire globe. The economic context is mostly a private one, with the intervention of the government in economy being restricted; in other words, the economy is ruled based on the principles of demand and supply. The government makes its purchases within the private sector. The companies in the private sector then represent the engine of economic growth in the United States. They are highly strengthened by technologies and they have a relatively increased flexibility in managing capitals and staffs. These features make the US firms more competitive then the firms in other countries. Despite its impressive size, the strength of the US economy is currently shaking as a result of the economic crisis commenced in 2007. Whereas the country only entered recession in 2008, the economic crisis has in fact revealed some problems that already existed within the country, such as unstable and insufficient financial policies, dangerous lending practices or insufficient fiscal regulations. The recession however deepened as the country witnessed the burst of the real estate bubble, the deflating property prices, the failures of investment banks and the contraction of credit
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