As the Chief Executive Officer (CEO) of a major organisation that is based in the US. you GUIDE: monitor and observe economic conditions so to develop forecasts of the demand for products QUESTION A sold by your organisation. Introduction: The US economy is currently stagnant and there are concerns by economists that the economy is headed for a recession. However, there are some industries in the economy that are still Goals of Macroeconomies policy experiencing high growth. The current year's inflation rate is the highest recorded in the past Main Body: five years. You also observe that next year will be a presidential election year in the US. In addition, the US central bank's (Federal Reserve) chairman's term is expiring in six months" Roles of government - Macroeconomies policy Time Roles of central bank - Macroeconomies policy Background of US system in managing macroeconomies policy -> specific roles of US government and US central bank US election features Question A: Explore US government actions prior to elections Based on the scenario provided, discuss whether the current government administration is Negative impact of these actions likely to focus more on increasing economic growth or reducing inflation. Conclusion: (30 marks) Most of the time, these negative actions occur Question B: QUESTION B Based on the scenario provided, discuss whether the Federal Reserve is likely to focus more Intraduction: on increasing economic growth or reducing milation. Primary role of central -> Specific role of US central bank (35 marks) Main Body: Question C Theory of central bank independence Explore independence of US central bank with US government Discuss what your forecast will be in terms of how the government will affect economic Based on specific role - Counter inflationary actions by the government -> Contractionary conditions and how this will impact the demand for your organisation's products. monetary policies Elaborate on the policies (35 marks) Justify in the past if these had happened in the US Conclusion: Reaction by the US central bank QUESTION C Introduction: Government actions -> increases in GDP and employment Examples: Government spending with examples Main Body: Impacts interest rates -> Bond Market and Money supply market, loanable funds market Bond Market - Increase in wealth, Increase in borrowing Money supply - Transactions demand for money Conclusion: Increased demand up to which period -> should the firm invest in long-term fixed assets