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The Role of Government Actions that Impact the Economy What are the roles that government plays in the United States economy? VUS.15e

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The Role of Government Actions that Impact the Economy

What are the roles that government plays in the United

States economy?

VUS.15e

Page 2: The Role of Government Actions that Impact the Economy · What are the roles that government plays in the United ... on economic indicators such as Gross Domestic Product, exchange

The “Fed”• The Federal

government has the ability to influence the United States economy.

• It bases its decisions on economic indicators such as Gross Domestic Product, exchange rates, inflation, and unemployment rates.

Page 3: The Role of Government Actions that Impact the Economy · What are the roles that government plays in the United ... on economic indicators such as Gross Domestic Product, exchange

What are the roles that government plays in the United States economy?

Page 4: The Role of Government Actions that Impact the Economy · What are the roles that government plays in the United ... on economic indicators such as Gross Domestic Product, exchange

Federal Reserve - monetary policy decisions control the supply of money and credit

to expand or contract economic growth

Page 5: The Role of Government Actions that Impact the Economy · What are the roles that government plays in the United ... on economic indicators such as Gross Domestic Product, exchange

President and Congress - fiscal policy decisions determine

levels of government taxation and spending; government

regulates the economy

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