America has a variety of business types and runs off of a cycle.
-Macroeconomics is the study of behavior and decision making for entire economies. -Microeconomics is the study of behavior and decision making for small units or individuals. -These two types of economic thinking give American citizens the option to decide what kind of business they want to work for or manage by. Gross domestic product is the total value of all final goods and services produced in that economy. - The nations GDP gives individual businesses an annual goal to work towards so that they can keep up with the rest of the nation. This is one of the ways the country works together to better its economy. Employment- -The federal government makes it a goal to provide enough jobs to everyone able to work. - An unemployment rate between 4% and 6% is desirable. As of October 2014, America's unemployment rate is at 5.8%. Stability and Security- -Another goal/ responsibility of the federal government. -Stability provided by the government gives consumers, producers, and investors confidence in the economy. Therefore, the economy grows because of willingness to produce, consume, and invest. -For reassurance, there are indicators of stability. -Government strives to prevent drastic shifts in prices. Fluctuations in prices can cause lack of confidence in the U.S' economic system. - Another indicator is the health of the nation's financial institutions. The government monitors and regulates banks procedures to protect citizens from fraud and mismanagement. Technology and Productivity- -Technology is the process used to produce a good or service. Technological improvements allow economies to produce more without spending more. Therefore the opportunity cost for growing is not so much. Technology increases the U.S' GDP and makes the country a worldwide economic competitor. -The government also fully supports innovation and growth. -Federal agencies fund research -Government have their own research institutions -Grants patents and copyrights to inventors |
Growth and stability
-All about options and goals
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