Domestic Economic Policy 2024

What is the GDP of the United States as of the 4th Quarter of 2023?

• 24.4 trillion USD +3.4 growth

• 1.5 trillion USD -3.4 growth

• 500 billion USD +1.3 growth

• 10 trillion USD +0 growth

What causes an increase in the GDP?

• Decreased consumer spending
• Reduced government spending
• Factors such as increased consumer spending, government spending, investments, exports, and technological advancements.
• Decline in investments

What is the current rate of UNEMPLOYMENT ?

• The current rate of unemployment is 3.8%

• The current rate of unemployment is 14%

• The current rate of unemployment is 20%

• The current rate of unemployment is 0%

How does the rate of low UNEMPLOYMENT rate affect the middle class?

• A lower unemployment rate can negatively affect the middle class by reducing government assistance programs
• A lower unemployment rate can positively affect the middle class by potentially leading to higher wages, more job opportunities, and overall economic stability.
• A lower unemployment rate can negatively affect the middle class by causing inflation and higher cost of living
• A lower unemployment rate can negatively affect the middle class by leading to increased competition for jobs

Using the CONSUMER PRICE INDEX report, by how much (percentage) has the price of all goods changed?

• The price of all goods has remained constant according to the report
• The price of all goods has increased by 50%
• The price of all goods has decreased by 25%
• The percentage change in the price of all goods has increased 0.4%

How does an increase in the price of goods affect the middle class?

• It increases their savings and investments
• It reduces their purchasing power and can lead to a decrease in their standard of living.
• It boosts their disposable income
• It enhances their ability to afford luxury items

What is the current rate of INFLATION (based on CPI)?

• The current rate of inflation is holding steady at 2%

• The CPI reports the current rate of inflation has risen to 3.5%

• We have had 0% inflation - the cost of goods has not increased.

• Inflation rate is 20%!

As of March 2024, the United States is in which phase of the BUSINESS CYCLE?

• Recession
• Expansion
• Peak
• Trough

During the EXPANSIONARY PHASE of the BUSINESS CYCLE, the president/government should

• Implement expansionary fiscal and monetary policies, such as: decreased discount rate, buying government securities, and a lowered reserve ratio

• Maintain the status quo and avoid any changes
• Reduce government spending and increase taxes
• Implement contractionary fiscal and monetary policies, such as: cut spending and raise taxes