Question

Summarize the overall trends and outcomes of 2000 - 2010 in the US by integrating economic models, and historical analysis. Refer to GDP, unemployment, interest rate, fiscal policy, monetary policy and foreign trade.

Please relate answer in summary form and only for the 2000 - 2010 US time period.

Answer 1

During period of 2000 to 2010 the President of US was  Bill Clinton, and in mid George W. Bush, and in the end 2010 Barack Obama. They all taken and major steps, changes and implied many policies which affected the working of US economy during this period, ie. GDP, unemployment, interest rate, fiscal policy, monetary policy and foreign trade.

During the 2000–10 decade reflect continued growth. Gross domestic prod-uct (GDP) is expected to reach $12.8 trillion in chained 1996 dollars by the end of the decade,an increased of $3.6 trillion in the end of 2010.

Rised by an average annual rate of 3.4 percent, GDP projected that growth was faster than the 3.2 percent annual rate of growth over the than the previous 10 year period.

2.3% employment ie. Growth of 1.1% percent in 2000 to 2010, which result in an increase of 16.2 million employees over the latter period.

During this period , the Federal Reserve has reduced its policy interest rate, the federal funds rate, from 6.52% in September 2000 to a current level of 1.75%.Fiscal Policy also has become more expansionary. This active use of fisical policy during a recession is somewhat unusual.

During this period US largely traceable to the ending of the dot-com boom and the resulting sharp decline in stock prices. Also Declining coefficients in the model’s estimated policy rule point to a shift in the Fed’s emphasis away from stabilizing inflation over this period. More importantly, however, the Fed held the federal funds rate persistently below the values prescribed by this rule. Under this more discretionary policy, inflation overshot its target and the funds rate followed a path reminiscent of the "stop-go" pattern So gov't of US takes crucial step ie. began to increase its target for the federal funds rate, left the increase  pace of investment in information technology during the boom.

The employment projection is accompanied by an unemployment rate of 4.0 percent in 2010, the same as in 2000. And Then Great Recession officially ended in September 2010. But unemployment remains high, foreclosures continue and President Obama has called for a two-year pay freeze for federal workers. But still high unemployment continues to force many Americans into difficult decisions on small and sometimes large scales.

During (2000 to 2010) USA Comprises the foreign trade ie.(international imports and exports) of the United States, one of the world's most significant economic markets. The country is among the top three gobal international trader (i.e. importers and exporters ).The Constitution gives Congress express power over the imposition of tariffs and the regulation of international trade. And establish tariff rates; implement trade agreements; provide remedies against unfairly traded imports; control exports of sensitive technology; and extend tariff preferences to imports from developing countries.