1. Unemployment for the last 6 months has been around the 4.1% mark. Although energy and food prices have been fluctuating up and down, the overall inflation rate has remained constant at a 20 year low of below 2.0%.Car sales and durable good sales are rising at a moderate but steady rate.Retail sales are increasing brisk at a 4% annual rate.GDP is rising at about 3% per quarter, according to the latest data.Housing sales are rising at a moderate rate.Housing prices have increased by about 3.8%--a moderate increase.Inventories are at desired levels.The natural rate of unemployment is considered to be between 4.0% and 4.5%. The stock market has hit all-time highs.

1. The problem in the economy, if any (Describe from the information given in the paragraph, why you chose that particular problem)

2. The monetary and fiscal policy to be used;

3. The tools of the policies and how they work to correct the problem;

4. Any undesirable consequences that may arise when the Fed and/or the federal govt. implement the policy.

5. In your discussion please discuss the branch of the govt. that will implement each of these policies (Federal government or the Federal Reserve.).

This is for an Essay I need good long explanations. Thankyou!