ECONOMY

Economy

Economy

The present day macroeconomic condition in the United iInequality in labor income has increased sharply in the US since the early 1970s, Today economists recognize that total spending or aggregate demand is determined more by monetary policy than by fiscal policy. In other words, if Congress passes tax or spending legislation intended to affect total spending or aggregate demand, these effects can be fully offset or outweighed by changes in monetary policy. Indeed, accurate counter-cyclical fiscal policy—altering budget deficits to manage economic activity or aggregate demand—is now seen as neither possible nor desirable.(Storesletten, 2008)

Economists no longer agree on even the direction ...