Question

please help me solve this question it needs to be with at least a two paragraph response.

1)List two macro and micro economy issues

currently facing the US economy.

Answer 1

As far as microeconomic issues are concerned for the US economy the major problem right now is the Private consumption which is continuously decreasing as per the updated data this is leading toa demand side problem which can not be overcome completely by government spending and can be relly deterimental to the economic growth of steps are not taken to boost private consumption ,second major issue is with regards to the Investments which has also dropped for the third consecutive quarter and if the investment cycle doesn't improve this will have cascading impact on the employment rate and wage growth.

On Macroeconomic front although subsiding but major concern is with regards to Large current account deficit although export position has improved considerably and the country is showing continued export momentum but the deficit is considerably big and trade deals should be the way forward to bring that down in the meaningful way first phase trade deal with China is a positive step, Other major issue is with regards to government spending and rising inequality although the unemployment is at the historic low levels but recent data suggest that the inequality and wage differential is an all time high which lead to ordinary citizen struggling to cover its expenses this can be controlled properly by strategizing government spending