Revised Response to: What the Best Fiscal Policy

For the past three years the unemployment rate determined from the website: http://research.stlouisfed.org/fred2/categories/10/downloaddata is 4.7 percent. This unemployment rate is good as it is below 5 percent meaning that the country's economy is growing. As long as this rate stays the way it has been for the years 2005, 2006, and 2007 the economy will continue to grow and prices will decrease and taxes will be low. If the unemployment rate increases then an expansionary fiscal policy will be in order because the economy is falling. If the unemployment stays the same or gets better there is no need for a policy because the economy is at a rate where it wants to stay so it can continue to rise.The surplus for the past three years based on the data from the website: http://www.cbo.gov/. The surplus percentage for the years 2005, 2006, and 2007 as an average is 3.1 percent. This is good and there is no need for any policies. There is no need for any policies because an expansionary fiscal policy will result in a budget deficit. No contractionary fiscal policy is need either because there is a need for a surplus and no need for the economic growth of the U.S. to decrease.