Suppose the U.S. economy is producing at the natural rate of output. A depreciation of the U.S. dollar will cause an increase in real GDP in the short run and an increase in inflation in the short run, everything else held constant.
What type of economy is the US?
- The American economy is heterogeneous, showing elements of both capitalism and socialism.
- When it comes to the utilization of capital, such a mixed economy supports the free market, but it also permits government involvement for the greater good.
What makes up US economy?
- In 2019, the economy was composed of 25% of products and 45% of services.
- Government spending is the second-largest factor, accounting for about 18% of GDP.
- This covers health care, Social Security payouts, and national defense spending.
- Budgets for the state and the city are also included.
Who controls the US economy?
- The Federal Reserve Board, the country's central bank, controls monetary policy with a high degree of autonomy from the president and the Congress.
- Control and regulation.
- The federal government of the United States controls private business in a variety of ways.
- Two broad categories can be used to describe regulation.
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