... and taxes in order to stimulate spending. Taxes were lowered and spending increased. This debate is one of the key differences between fiscal and monetary policy. Fiscal policy is much more difficult to implement. However, fiscal policy, once adopted, is likely to have a faster effect on spending. Monetary policy decisions are much easier to institute and more responsive to economic conditions, but take longer to actually have an effect. 1. GDP growth is approximately 1.5%, and has been at approximately that level for two years. The Gross Domestic Product (GDP) is the sum of good and services produced in the United States for a given period. It is an indicator of general business activity, economic growth and a good index for the economy. The most widely followed measure of economic growth is Real GDP, which adjusts GDP to remove the effects of inflation. The anemic annual GDP rate of growth of ...

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