Question

Please describe the current fiscal policy in the United States by using economic arguments. I will rate, but pleaseeeeeee add any sources you use.

Answer 1

Thee role of government in the American economu extends far beyond its activities as a regulator of specific industries.The government also manages the overall pace of economic acitvity, seeking to maintain high level of employment and stable prices. It has two main tools for achieving these objectives: fiscal policy, through which it determines the appropriate level of taxes and spending; and monteray policy, through which it manages the supply of money.

Fiscal Policy

The government since the 1930s has been accompanied by steady increases in government spending. The fedral government ccounted just 3.3% of the nation's gross domestic product or total output of goods and services excluding imports and exports. The development of fiscal policy is an elaborate process. each year the president proposes a budget or spending plan to congress.The current state of fiscal policy has been largely determined by the response of the great recession and the ongoing expansion of government transfers.The fiscal measures undertaken to mitigate the impact of previous recession resulted in deficits of unprecedented magnitude for the postwar period and a prolonged politically contentious period of normalization.