In the aftermath of The Great Recession how would you descri

In the aftermath of \'The Great Recession\', how would you describe the economic growth scenario for the U.S. economy? Explain your answer. P/s: Please explain how the US economic growth for now. Thank you!

Solution

In the aftermath of the great recession, there were high level of unemployment, decreasing aggregate demand and consumer confidence at the lowest level. It made the prediction that it is a long road to recovery for the economy and it required an active intervention, not only from the federal reserve, but also from the federal government to push the aggregate demand, capital building and slowly pushing the economy towards the recovery. It happened in this way and the government came up with the multi-billion package to stimulate the economy, with support of the expansionary monetary policy, where the federal reserve kept the federal fund rate to be up to the 0%. It took few years to revive the economy.
At present, the unemployment rate is below 4%, inflation rate is 2% and GDP growth rate is well over 2% in the last quarter. It makes a picture of U economy that is full of investors’ confidence and bound for higher level of growth. A good job market conditions, lowering claims of unemployment benefits and increasing federal fund rate, represent the encouraging scenario of the US economy to make it flourish again.