Week Four Reflection Essay Example for Free

hebdomad Four Reflection EssayTeam A will discuss the objective, which consist of analyzing the influence of the debt in the United States parsimony, and explain the impact that surplus and dearths has on the health of the United States macro frugality.To analyze the influence of the deficit, surplus, and debt on the health of the United States macroeconomy you have to understand what exactly is deficit and surplus. A deficit is a shortfall of revenues are under payments, and a surplus is the excess of revenues are over payments. The influence of surplus and deficit on the economy differs in the short-term role model and the long-term framework. In a short-term framework the view of deficits and surplus certainly depends on the current state of the U.S. economy relative to the economy potence proceeds. In a long-term framework surpluses are good they provide additional savings for the economy. In a long-term framework deficits are view as bad because they reduce growth, incom e, and savings, but if the U.S. economy is operating below the potential its deficits is view as good for the economy. This is because deficits increase expenditures increasing the economy output closer to its potential.To understand how debt influences the U.S. economy you have to understand what a debt is. A debt is the accumulated deficit damaging the accumulated surplus, where you have surpluses and deficits which are flow concepts or measures that is defined for a certain period in the economy. As an American it is important to always to knowhow debt, surplus, and deficit affect the U.S. economy. This effects the economy from expenditure to all paycheck these transactions affects the flow of the marcoeconomy.This week chapter 17 and 18 covers the importance of surplus, deficit, and debt in depth. It also covers how to pay the deficit as well as viewing deficits and surpluses as a summary measure. Buy know what policy directive to follow gives the policy makers the tools to recommend on rather the economy will strike a long-term framework approach or a short-term framework approach. In the U.S. economy current condition, if the United States keep spending more than our annually income you can bet that the worse is quiet down to come.References(Macroeconomics 8e, ch17 Author David C. Colander copyright 2010 McGraw-Hill)