U.S. Economy 2008 to 2011 Stock Market 13,000 → 6,500 → 12,000

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Presentation transcript:

U.S. Economy 2008 to 2011 2008 2011 Stock Market 13,000 → 6,500 → 12,000 Unemployment 5% → 8.9% GDP Recession → 2-3% Growth Inflation Low → low/moderate Debt 10 Trillion → 14.3 Tril. Interest Rates 5.25% → 0.0% AS1 Inflation AD1 Real GDP

Question #1 1) Discuss some possible solutions to increase . 1) Discuss some possible solutions to increase the current rate of GDP growth. Benefits Costs/Risks

What makes an economy expand? GDP GDP - Focus on what will shift the PPF graph to the right - Think long run & short run

Growing the U.S. Economy Economists argue over the benefits/costs of both Expansionary Fiscal Policy & Loose Monetary Policy. Base your policy on a cost/benefit analysis. Be sure to talk about the risk of your policy. Costs/Risks Idea to Grow Economy