The Role of Government Actionsthat Impact the EconomyWhat are the roles thatgovernment plays in the UnitedStates economy?VUS.15e
The “Fed”• The Federalgovernment has theability to influence theUnited States economy.• It bases its decisionson economic indicatorssuch as Gross DomesticProduct, exchangerates, inflation, andunemployment rates.
What are the roles thatgovernment plays in theUnited States economy?
Federal Reserve - monetarypolicy decisions control thesupply of money and creditto expand or contracteconomic growth
President and Congress - fiscalpolicy decisions determinelevels of government taxationand spending; governmentregulates the economy