My name is Armando and i am a mechanic. The government has increased the taxes on my Auto Shop
Now I cant afford to repair my project race car. Dang It!!!
The U.S. GDP Is rising at steady rate. However, prices have continued to sky rocket. What used to be a $100 ratchet now costs $10,000. How will the president do to bring inflation back under control?
The U.S. Government has decided to put the contractionary fiscal policy in action. This will increase the taxes to slow down the high inflation. This affects Armando because he cannot afford the tools to do his job.
The car parts for this assembly line is too expensive. I will have to fire some people and decrease production.
Armando can no longer do his job. so his project race car build has come to a halt. He will also not be able to attend the race tournament.
I was fired from my job because the employer could no longer afford to pay me. I lost my house and now live in this old hut in the middle of nowhere. However, recently loan interest decreased so i will soon go purchase one and try to re buy my house.
In the U.S. Inflation Has returned to Creeping inflation. Even so it is still too high. Everything is still very expensive and products are not being sold,
Since everything is expensive, factories cannot afford as much employees. increasing the unemployment rate. The federal reserve decides to put the Easy Money monetary policy in action. This reduces Interest on loans making more people purchase loans.
Now that more people have gotten loans, they have more money in their pocket/Economy to purchase goods and services. This allows companies to be able to afford more employees. Therfore reducing the unemployment rate.