(Answered)-Unemployment has increased to 11.2% this month, higher than it - (2025 Updated Original AI-Free Solution

Question

1. Unemployment has increased to 11.2% this month, higher than it has been for the last 28 years. Retail sales, sales of motor vehicles, and durable good sales have all decreased dramatically over the last seven months.? Housing sales are down an average of 6% over the last seven months.? Foreclosures on residential properties are the highest since the Great Depression due to subprime loans. The number of discouraged workers has increased dramatically over the last year (If we add the unemployment rate to the Discouraged worker rate, then the total unemployment rate is around 17.5 %.).? GDP has decreased 6.8% over the last year and the forecast is that GDP will continue to decrease.? Consumer confidence is at its lowest point in 30 years.? Business inventories are at an all-time high.? The inflation rate over the last year has been less than 1%.

1. The problem in the economy, Unemployment is very high

2. The monetary and fiscal policy to be used; Expansionary both

3. The tools of the policies and how they work to correct the problem; The tools would increase government spending, decrease taxes. Which would decrease unemployment, the money supply will rise

4. Any undesirable consequences that may arise when the Fed and/or the federal govt. implement the policy.? Inflation will rise

5. In your discussion please discuss the branch of the govt. that will implement each of these policies (Federal government or the Federal Reserve.).?