Chapter 31, Problem 1DQ

To determine

The role of Council of Economic Advisers (CEA).

Explanation of Solution

The CEA is a body of officers, who are responsible for advising the president on domestic as well as international monetary policy of the government. They provide necessary guidance to the president regarding the fiscal policy of the president and the country. The functions of the CEA can be summarized as follows:

1. Assist and advise the president in the fiscal matters, which is the prime most duty of the CEA by being in the executive office of the president.

2. To compile and submit the studies relating to the developments in the economy to the president by collecting the timely and authoritative data from the economy.

3. To appraise the various economic activities of the government; after a detailed analysis, the required recommendations are laid down to the president.

4. Develop and recommend national economic policies to the president.

5. To prepare the required reports about various aspects of the economy, on president's request.

The members of the Council of Economic Advisers and their university affiliations are as follows:

Jason Furman (28th chairman) holds PhD in Economics from Harvard University.

Sandra Black received B.A from University of California, PhD in Economics from Harvard University.

Jay Shambaugh received B.A from Yale, M.A.L.D from Tufts University and PhD from University of California.

Economics Concept Introduction

Concept introduction:

Council of Economic Advisers: It is the agency which advises the president on economic matters. The office is included within the executive office of the president.