In the recent past, the attention of the Americans and the economic opinion makers has been on the ever-widening gap between the rich and the poor. Prevalence of income inequality has grown to alarming rates (Mărginean and Chenic, 92-102).
Gross Domestic Product (GDP)
The crisis that erupted in the financial systems of developed countries in the autumn of the year 2008 affected almost all economies throughout the world. The result of this crisis was job losses, bankruptcies as well as cuts in the incomes of millions of people.
The world has evolved, and throughout the study of geography, there have been a number of theories that have come up in a bid to explain the development of the world’s cultures and societies.
The expression financial crisis broadly applies to a number of cases in which the vital financial assets rapidly lose a great proportion of their nominal value. During the nineteenth and twentieth centuries, numerous financial instabilities have a high link to banking panics and numerous recessions coincided with the panics.
Labor and capital are the major input determinants of production in the economy. A high rate of Gross Domestic Product (GDP) may translate in to high employment since labor is a key determinant of production.
Monetary policy can be described as the process by which the Federal Reserve controls the supply of money, often targeting a rate of interest of the purpose that promotes both stability and economic growth.