Page 1 of 3

Aggrreate Demand and Supply

Continues for 2 more pages »
Read full document

Aggrreate Demand and Supply

Page 1 of 3
Aggregate Demand and Supply Models
Team C
Ellen Campbell,
April 6, 2013
Stephen Martin
University of Phoenix

Introduction
Leaning team C is a group of International reporters. The team has the task of describing and critiquing the current state of the U.S. economy. The current state of the following economic factors is: unemployment, expectations, consumer income, and interest rates. Team C will identify the existing effect of the economic factors on aggregate demand and supply. Team will describe the fiscal policies that are currently being recommended by government leadership. Also the Team will evaluate the effectiveness of those fiscal policy recommendations from the Keynesian and Classical model perspectives Aggregate Demand and Supply of Unemployment

People have little or no more when unemployed, which is less demand in the economy. This swing causes the aggregate demand to curve to the left. Unemployment and Fiscal Policies
The federal government produces laws, guidelines and strategies to defend or help the American peoples, which may have economic influence an example is generating jobs. According to the free dictionary, fiscal policy defines taxation and expenditure, which the government follows in a determination to affect the total state of the economy. The fiscal policy objectives are to decrease unemployment and inspire economic development (Gregory Hamel, 2013).

Importance of Unemployment
Unemployment has a damaging effect on the federal government’s capability to produce revenue and also have a tendency to decrease economic activity. When there are less people working there are decrease people paying taxes to the government. The small consumer spending makes it more difficult for businesses to flourish and grow (Gregory Hamel, 2013). Taxation

The government can reduce unemployment by use of tax. If were to increase taxes consumers would have less disposable income for consumption. In a result consumer would purchase less...