From the course material and other sources, you learned that increasing real gross domestic product (GDP) is critical to economic health. There are tools available under both policies (fiscal policy and monetary policy) to help achieve this goal. The Federal Reserve implements monetary policy, and fiscal policy is under the domain of the Federal Government. Write a six- to eight-page paper covering the following:
1. What is meant by real GDP versus nominal GDP? Why is real GDP growth important and what does it seek to accomplish?
2. In what ways does real GDP growth impact employment? Why is full employment important?
3. How does it relate to price stability? As it relates to GDP, what might be the cause of price inflation?
4. What is the current real GDP growth number and how does it relate to previous years?
5. What role does unemployment play in the economic growth equation?
6. How can social factors such as immigration and discrimination affect economic growth?