Basic ingredients of the United States economy. Stabilization and growth of economy. General categories of economic regulation. Main functions of the direct assistance. The United States public and federal debt. The two preceding definitions of poverty.
Economy of the United States The United States has the largest national economy in the world, with a GDP for 2005 of 12.41 trillion dollars. In this mixed economy, corporations and other private firms make the vast majority of microeconomic decisions, and governments prefer to take a minimal role in the domestic economy. Because of this, the U.S. has a small social safety net, and business firms in the U.S. face considerably less regulation than those in many other nations. The fiscal policy of the nation since the New Deal has followed the general ideals of Keynesian economics, which replaced Hamiltonian economics following the Great Depression. Neoliberal ideals have become more prominent since the presidency of Ronald Reagan and with the growing influence of globalization. Since the early 1980s, the United States has transformed from being the worlds largest creditor to having a substantial current account deficit and a national debt, which is now approximately 64% of the GDP and the highest since the 1950
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